Stimulus Plan / IRA’s
Understand 2020 RMD’s can be suspended under the recent legislation.
How about if someone had to take one by April 1 if they delayed in 2019?
Understand 2020 RMD’s can be suspended under the recent legislation.
How about if someone had to take one by April 1 if they delayed in 2019?
Permalink Submitted by Alan - IRA critic on Fri, 2020-03-27 20:14
It appears that if 2019 was the first RMD distribution year with 4/1/2020 being the RBD, the amount of the 2019 RMD remaining after 12/31/2019 is waived, as well as the 2020 RMD.
Permalink Submitted by Jose Morales on Fri, 2020-03-27 20:22
The language of the legislation:“(ii) SPECIAL RULE FOR REQUIRED BEGINNING DATES IN 2020.—Clause (i) shall apply to any distribution which is required to be made in calendar year 2020 by reason of—“(I) a required beginning date occurring in such calendar year, and“(II) such distribution not having been made before January 1, 2020.
Permalink Submitted by Alan - IRA critic on Fri, 2020-03-27 21:51
Yes, the quoted provision waives the 2019 RMD when the RBD is in 2020, except to the extent of distributions taken in 2019. But it doesn’t affect the 2020 RMD itself being waived in addition. Therefore, this is a special double RMD waiver for 2020 RBD individuals.