CARES Act Update on Required Minimum Distributions
The CARES Act was passed in response to the COVID-19 pandemic earlier this year, providing relief through stimulus checks and changes to unemployment benefits. Additional provisions in the stimulus package aided investors in the areas of 401k hardship withdrawals, 401k loans and required minimum distribution.
Required minimum distributions (RMDs) from retirement accounts was suspended, allowing investors to let their accounts recover from the volatile market.
“The goal here, at a time of economic uncertainty, was to not force distributions out of accounts, when account balances were already down significantly, says Ryan Glinn with W3 Wealth Management in Warren.
In this episode of The Cautious Investor, Glinn explains the newest updates pertaining to required minimum distribution in the CARES Act.
Initially, time limitations in the RMD provision left some investors in the dark. Those who had taken their RMDs before February 1 were not able to take advantage of the CARES Act.
“On July 23, the IRS made an amendment to the CARES Act,” Glinn says. “Now, all RMDs taken this year can be put back the later of 60 days of receipt, or by August 31 of this year.”
For any clarifications regarding the provisions in the CARES Act or how they may pertain to you, Glinn recommends that you contact a financial professional.
W3 Wealth Management, LLC is a total financial planning firm. And when we say total, we mean it. W3 has assembled a team of accredited advisors including certified financial planners, CPA’s, attorneys, CLU’s and ChFC’s to assure all your financial affairs are working in tandem.
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