The Coronavirus Aid, Relief and Economic Security (CARES) Act enacted to provide relief in response to the coronavirus (COVID-19) pandemic includes a provision to waive Required Minimum Distributions (RMDs) during 2020 for individual retirement accounts (IRAs) and retirement plans, including for beneficiaries with inherited accounts.
- The waiver includes RMDs for individuals who turned age 70.5 years in 2019 and took their first RMD in 2020.
- Individuals who took RMDs in 2020, including those who turned 70.5 years during 2019, have the option of returning the distribution to their account or other qualified plan.
- Roth IRAs do not require withdrawals until after the death of the owner.
- The CARES Act provisions apply to most retirement plans including traditional IRAs, SEP IRAs, 401(k) plans, 403(b) plans, 457(b) plans, profit sharing plans, and other defined contribution plans.
- The RMD suspension does not apply to qualified defined benefit plans.
KRS professionals are available to assist you during this unprecedented time. Please contact us if you have any questions about your 2020 RMDs.