Did you know that as of March 27, 2020, most Required Minimum Distributions (RMDs) were waived for the 2020 calendar year? That means that if you normally take an RMD from your IRA or business retirement plan, except for pension plans, you are not required to take that distribution for 2020.

In most cases, if you depend on your regular RMD for income, you are still able to request to take the same distribution amount. It just is not required for 2020.

Did you take a scheduled distribution early in the year before the waiver was passed? The IRS is permitting anyone who has taken an RMD so far in 2020 and really does NOT want that taxable distribution for 2020, to re-deposit that withdrawal as a rollover contribution as long as it is done before August 31, 2020.

Changes in your income due to the change in RMD requirements for 2020 may require some additional tax planning. To get more details about waived RMDs, discuss your current situation, or schedule an appointment for tax planning, please contact your local Blue & Co. advisor.