Did you already take your RMDs this year? Act now.

Typically, individuals over 70 1/2 are required to withdraw the Required Minimum Distribution from their IRAs or retirement plans each year. The Coronavirus Aid, Relief, and Economic Security Act (Cares Act), which was passed on March 27, 2020 waived the requirement for RMDs to be withdrawn in 2020.

The CARES Act enabled any taxpayer with an RMD due in 2020 from a defined-contribution retirement plan, including a 401(k) or 403(b) plan, or an IRA, to skip those RMDs this year. This includes anyone who turned age 70 1/2 in 2019 and would have had to take the first RMD by April 1, 2020.

In addition to the rollover opportunity, an IRA owner or beneficiary who has already received a distribution from an IRA of an amount that would have been an RMD in 2020 can repay the distribution to the IRA by August 31, 2020.

If you have any questions, please contact our office at 985.400.3120.

O’Neill CPAs & Business Advisors