Suspension of RMD’s

[x3 skier]

With the inclusion of a suspension of the need to take Required Minimum Distributions in the Senate Bill, I wonder if this will be automatic, by request or what the process will be to either continue or discontinue RMD’s.

Cheers.

 

[Luanne]

That's great, if you don't need the money.

 

[VacationForever]

If you want to waive taking RMD for the rest of the year, you simply stop it. If it is handled by an investment house, you just let them know, otherwise you just stop withdrawing. It is not automatic because everyone's situation is different.

 

[chapjim]

Keep working and there's no RMD. I'm still working full-time and making contributions to a 403(b) (I think -- I work for a company that is organized as a not-for-profit company).

 

[MULTIZ321]

Coronavirus stimulus-package tax relief: Withdraw $100K from your IRA and repay in 3 years with zero tax liability.

Coronavirus stimulus-package tax relief: Withdraw $100K from your IRA — and repay in 3 years with zero tax liability

Use the money to pay bills, pay down your HELOC, or simply to get through the pandemic.

www.marketwatch.com

.


Richard

 

[SmithOp]

Keep working and there's no RMD. I'm still working full-time and making contributions to a 403(b) (I think -- I work for a company that is organized as a not-for-profit company).

If you are still working and have money in the company retirement account then RMDs are deferred. If it's a previous employer or self funded IRA then you have to take RMD.

I have a tax client that just started RMD at 85, it's a bigger chunk when you start later due to reduced life expectancy.

Sent from my SM-G970U using Tapatalk

 

[chapjim]

If you are still working and have money in the company retirement account then RMDs are deferred. If it's a previous employer or self funded IRA then you have to take RMD.

I have a tax client that just started RMD at 85, it's a bigger chunk when you start later due to reduced life expectancy.

Sent from my SM-G970U using Tapatalk

That's the way I read it. I work for government contractors so I change companies every few years. I've been at this agency since 2007 and I'm on my fourth employer. I started with my current employer late last year and started contributions right away. I also check with the company's benefits folks -- they concurred. I still have funds in the previous company's 401(k) so maybe I should roll that to the new company's 403(b).

 

[rapmarks]

So according to previous posts, we will have to withdraw RMD this year if we are not working?

 

[GetawaysRus]

The dust is still settling, so things are still not 100% clear to me. But I did come across this article published today, March 27. I expect that we'll see more information in the coming days. Of course, everyone's individual situation is different.

These retirement savers come out ahead in the coronavirus bill

Procrastination sometimes pays. Thanks to the coronavirus relief bill, people who were eligible to take their first required minimum distribution in 2019 and wound up waiting until April 1 to do so will waive two years of RMDs.

www.cnbc.com

 

[x3 skier]

This is why I asked the question. One answer says basically nothing changed, one article says you can defer no matter what unless you have already taken the total of the RMD.

I’ll will wait until my Account Manger tells me what are my options. Today I received my monthly RMD Amount as scheduled so I can wait at least a month to get the facts.

Cheers

 

[GetawaysRus]

I did read somewhere else that there will be no change in the RMD rules for INHERITED IRAs.

 

[MULTIZ321]

Congress Suspends Required Minimum Distributions For 401(k)s And IRAs For 2020,
Opening Window To Tax Savings.

Congress Suspends Required Minimum Distributions For 401(k)s And IRAs For 2020, Opening Window To Tax Savings

Congress is giving retirees a tax break, suspending RMDs from retirement accounts, but the RMD holiday doesn’t mean you should turn off the spigot.

www.forbes.com

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Richard