Normally, you need to make annual required minimum distributions at a certain age....
If you turned 70 1/2 years old before 2020 or are 72 years old now, you have to make a required minimum distribution (RMD) from traditional IRAs set up in your name and from a tax-favored company retirement plan account.
On top of making this distributions, you have to pay income tax on them.
But now with everything going on with the coronavirus (COVID-19), the CARES Act has been formed. This stands for Coronavirus Economic Relief Plan.
The CARES Act suspends all required minimum distributions that you would have had to take in 2020.
If you turned 70 1/2 years old last year, and did not take that initial RMD, this suspension would apply to that initial distribution as well.
All of the RMD deadlines have been pushed back by one year, and any deadlines that otherwise would have applied for 2020 will simply be ignored.
Please share this information with any older friends or family members you feel would benefit from this bill.
