As this has certainly been a year unlike any we have experienced with the COVID-19 pandemic, and a contested presidential election, we sincerely hope all of you are healthy and doing well.

As we all try our best to social distance, we know Thanksgiving this year will be celebrated with fewer family and friends around the table. While this is a time to reflect on the many things we are grateful for during these unprecedented times, first and foremost, we want to thank you for entrusting us with helping protect your financial future. We hope and believe that things will eventually get back to some form of normalcy as the vaccine becomes available.  All of us at Moore’s Wealth Management want to wish you a safe and Blessed Thanksgiving Holiday!

As the year is coming to an end, many of you have asked about your RMDs.  We want to remind you of the “Coronavirus Aid, Relief, and Economic Security” (“CARES”) Act which was signed into law on March 27th.

  1. Required Minimum Distributions (RMDs) for 2020 are not required. The CARES Act temporarily waives required minimum distributions (RMDs) for all types of retirement plans (including IRAs, 401(k)s, 403(b)s, 457(b)s, and inherited IRA plans) for calendar year 2020. This includes the first RMD, which individuals may have delayed from 2019 until April 1, 2020.
  2. Retirement Enhancement Act of 2019 (SECURE Act) changed the age for which an RMD is first required from age 70½ to 72.
  3. Distributions prior to age 59 ½ of up to $100,000 are not subject to penalty in 2020.  Account owners affected by coronavirus can take a distribution of up to $100,000 from their retirement plan or IRA in 2020 without the 10-percent early withdrawal penalty that normally applies to money taken out before age 59 ½.
  4. Distributions of up to $100,000 this year can be reported as income over three years.  The income tax on the distributions can be spread evenly over three years. Alternatively, the distribution may be repaid to an eligible retirement plan within a three-year period.

This information has been derived from sources deemed to be reliable but cannot be guaranteed. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. You should always consult your own legal or tax professional for information concerning your individual situation. 

Sources

https://www.cnbc.com/2020/03/30/op-ed-heres-how-to-take-money-from-retirement-account-under-stimulus-bill.html

https://www.washingtonpost.com/business/2020/03/30/coronavirus-stimulus-cares-act/

https://www.irs.gov/newsroom/irs-announces-rollover-relief-for-required-minimum-distributions-from-retirement-accounts-that-were-waived-under-the-cares-act

Advisory services offered through Moore’s Wealth Advisory, A Member of Advisory Services Network, LLC.  Insurance products and services offered through Moore’s Wealth Management.  Advisory Services Network, LLC and Moore’s Wealth Management are not affiliated.