06 Jul A Unique opportunity to delay taking required minimum distributions from your retirement funds.
The pandemic has lowered the value of many retirees’ investment accounts. It has been quite stressful for everyone to watch their accounts bounce around like pinballs, but, for those of you who are already retired, there is added stress when the market is volatile. Although income tax isn’t paid on money put into 401k’s and IRA’s, it is required to begin withdrawing a given percentage from the account (and pay income tax) once you hit the age of 70 1/2 or 72, depending on your birth date. While you may have been required to take money from these accounts this year, a law was recently signed suspending RMD’s for tax-deferred 401k and retirement accounts due to the current COVID-19 crisis and its effects on the financial markets. A great opportunity has arisen that will enable you to return any money taken in 2020 back to your retirement account. This gives you a chance to allow your balance to recover with the market as the pandemic slowly passes. You can return money taken from your accounts in 2020 by August 31st. This opportunity is also valid for those who reached the age required to withdraw in 2019 but delayed their first RMD to 2020.
(Source for more information)