(Mid-America Pension Rights Project): RMD Deferrals Aren’t Retroactive. We Answer Your Questions About the Cares Act.

Via Barron’s

By Cheryl Winokur Munk

The $2 trillion federal coronavirus-aid package includes a number of provisions to ease the financial burden retirees and savers face after the pandemic tanked U.S. financial markets and shuttered swaths of the economy.

Aside from making it easier for workers to access 401(k) savings, the Cares Act suspends required minimum distributions for this year from company plans like a 401(k) and 403(b) or individual retirement accounts. It’s welcome news for account holders who won’t have to take distributions or pay hefty taxes at a time when many portfolios are down sharply from near-record highs of Dec. 31, 2019, the date by which RMDs for 2020 are calculated.

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