CARES Act and Your RMD
CARES Act and Your RMD
Below you may find information about the CARES Act and how it can effect your RMD.
What is the CARES Act?
The CARES Act provides fast and direct economic assistance for American workers and families, small businesses, and preserves jobs for American industries. For more information on the CARES Act, please visit the U.S. Department of Treasury website at https://home.treasury.gov/policy-issues/cares.
What is an RMD and how does the CARES Act effect it?
Required minimum distributions are applicable to the majority of people over the age of 70.5 with a qualified account. As of 2020, a new act (The Secure Act) went into effect to increase this age to 72 (for more information on the Secure Act, please visit, https://www.congress.gov/bill/116th-congress/house-bill/1994/text.) The increased age is only applicable to people born on or after, July 1,1949. If you are of the age to take a Required Minimum Distribution (RMD) or are already actively taking it, you have the option to NOT take the distribution for 2020,due to the CARES Act. The option ONLY applies for the remainder of 2020.
How do I know if waiving the distribution is the right choice for me?
We advise you to speak with your financial professional and your tax professional before making the decision to waive your RMD.
Additional questions or want to waive?
Please contact, Alex King, for questions or to let us know if you would like to waive your distribution for the remainder of the year. To contact Alex King, please call (636)777-7780 or email aking@milleniallc.com.
This information is strictly for educational purposes and provided as a courtesy.