Senior need not take distributions from retirement accounts this year

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Senior need not take distributions from retirement accounts this year

Fri, 08/07/2020 - 04:02
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WASHINGTON – The IRS reminds seniors and retirees that they are not required to take money out of their IRAs and workplace retirement plans this year. The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, waives a required minimum distribution, or RMD, during 2020 for IRAs and retirement plans, including beneficiaries with inherited accounts. This waiver includes RMDs for individuals who turned age 70½ in 2019 and took their first RMD in 2020. Roth IRSs do not require withdrawals until after the death of the owner. If an individual has already taken an RMD in 2020, including someone who turned 70½ during 2019, the individual will have the option of returning the distribution to their account or other qualified plan. Since the RMD rule is suspended, RMDs taken in 2020 are considered eligible for rollover. Therefore, RMDs can be rolled over to another IRA, another qualified retirement plan, or returned to the original plan. An IRA owner or beneficiary who has already…

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