No RMD For 401(k)s, IRAs In 2020: Retirees Save
Good news for retirees regarding IRAs: you are not required to take your required minimum distributions (RMDs) from IRAs and 401(k)s this year. Similar to the law that passed during the recession in 2009, the recently-passed COVID-19 stimulus bill allows retirees to forego withdrawing RMDs in 2020. Sometimes the government can do taxpayers favors, and this counts as one. By taking away the RMD requirement, retirees can reduce their taxable income for 2020, saving them money in the process.
Of course, retirees can still take distributions from retirement plans such as IRAs and 401(k)s if they would like, but they are not required to do so for 2020. Freedom and flexibility are two things that almost all Americans enjoy. The question now becomes: what will retirees do with the tax dollars they are saving due to the suspended RMD requirement for IRAs? Spend it to buy something you want and help stimulate the economy in the process? Save it for a rainy day? Or add to the legacy you are building for your children and grandchildren? Contact us at Law Offices of Mary W. Kaplan, P.L. to discuss additional asset protection strategies to save tax money for you and your loved ones.