RMD requirement waived for 2020

Forum|Forum|6 years ago
March 30, 2020
5 replies
36 views

I read this in the NY Times Q&A summary of the recently passed rescue bill. The reasoning is that folks ought not have to sell their deflated stocks in order to take out the 2020 RMD. This might be something to inform clients about.... Also the 10% penalty for withdrawing from a 401K or IRA before age 59 1/2 may be waived. That was common during the 2008 financial crisis, but the penalty was not waived then.

ProSeries Professional

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Best answer by sjrcpa

Under certain conditions penalty on up to $100K withdrawal is waived, and tax can be paid over 3(?) years.

RMDs for 2020 are waived.

Both provisions in CARES Act.

sjrcpaAnswer

Level 15

Under certain conditions penalty on up to $100K withdrawal is waived, and tax can be paid over 3(?) years.

RMDs for 2020 are waived.

Both provisions in CARES Act.

The more I know the more I don’t know.

M

msmith7305

Level 6

I have seen absolutely nothing about what relief might apply, however, to those who have already taken their RMD. There would need to be a waiver of the no RMD Rollover rules and a relaxation of the 60 day rule even if they decided to allow rollovers.

What a mess.

Just-Lisa-Now-

Intuit Community Champion

Doesn't this start on 4/2? If people took the money out prior to 4/2 is wouldnt be penalty free, right?

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

G

GretaAuthor

Level 7

The waiver for the early withdrawal penalty states that it's due to Corona Virus (on Form 5239 I assume). In the 2008 recession, my unemployed clients withdrew from their IRAs to live on, but the penalty was not waived. The waiver of the penalty makes sense.

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