Seniors and retirees are not required to take money out of their Individual Retirement Accounts (IRAs) this year. On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), designed to assist Americans affected by the outbreak. The legislation contains multiple provisions impacting retirement accounts.
One of the provisions in the CARES Act waived Required Minimum Distributions (RMDs) during 2020 for IRAs and retirement plans, including beneficiaries with inherited accounts. The waiver also includes RMDs for individuals who turned age 70 ½ in 2019 and took their first RMD in 2020. (You’re not required to have been affected by the Coronavirus to waive your RMD for 2020.)
In keeping with this legislation, CEFCU canceled all automatic RMDs scheduled to be withdrawn from a CEFCU IRA between April 2020 and December 31, 2020. If you still want to take your 2020 RMD, you can do so by contacting the CEFCU IRA Department.
If you have an IRA and already took a distribution in 2020, you may be able to roll over the distribution to the original plan, another IRA, or qualified retirement plan IF it’s been within 60 days of receiving the distribution and IF all other rollover requirements are met. (The IRS’ deadline to repay RMDs that have already been taken was August 31, 2020.)
For more information on the CARES Act as it affects retirement plans and IRAs, visit irs.gov/newsroom.