Just a reminder that under the CARES Act, required minimum distributions (RMDs) from retirement accounts (other than defined benefit plans) are waived for 2020. The waiver applies regardless of age and includes original account owners and inherited-IRA beneficiaries. If you do not rely on your RMD for cash flow, contact your plan administrator and wealth manager about waiving your 2020 distribution. If you've already received your RMD, you can re-contribute the distribution to your account, as long as you do so by August 31, 2020. Unfortunately, you cannot reverse the tax withholding although the withholding will be applied on your 2020 tax return.
Since RMDs are based on the value of the account as of the end of the previous year, the suspension of RMDs for 2020 is also a way for account owners that experienced a steep decline in their IRA value to recover those market losses.
Planning for RMDs should be reviewed alongside your wealth manager, and keeping in mind your long-term financial planning and estate planning goals. For more information, contact us at 253.858.5434 or our colleagues at Summit Wealth Management at 253.858.2884. We're here to help!