CARES Act Updates: Relief from RMD

Who doesn't love saving money on taxes? Acadium has been staying on top of all the recent changes and once again would like to break down the tax savings opportunities recently presented.

In the beginning of 2020, among many other changes, the SECURE Act raised the age at which IRA withdrawals must begin from 70 1/2 to 72. We then saw a second act put into place about 90 days later. The CARES act signed into law by President Trump on March 27th included a provision that allows you to waive your RMD altogether in 2020. This was great news to a lot of people. However, there were many were unable to take advantage of the waiver.

The IRS announced on Tuesday, that anyone who had taken an RMD in 2020 has until August 31st to return the funds to the IRA account. Some of the situations in which someone would see a benefit from this change include:

  • If you took your RMD more than 60 days ago.
  • Owners of inherited IRAs/Beneficiary IRA.
  • If you were previously only able to put back part of what you took.
  • If you take substantially equal payments also known as 72t payments.

The tax landscape is changing quickly. We are not tax preparers, but if you have any general questions about the changes or would like to know how the changes may apply to you or anyone you know, we will be happy to meet and discuss.

Dawna M. DuClau FPQP

Paraplanner, Acadium Financial Partners
3601 PGA Blvd, Suite 301
Palm Beach Gardens, FL 33410
(772) 370-1143

Any opinions are those of Dawna DuClau and are not necessarily those of Raymond James. Securities offered through Raymond James Financial Services, Inc. member FINRA/SIPC. Acadium Financial Partners is not a registered broker/dealer and is independent of Raymond James Financial Services. Investment Advisory Services offered through Raymond James Financial Services Advisors, Inc.

The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. There is no assurance any of the trends mentioned will continue or forecasts will occur.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal issues with the appropriate professional.