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Are You Taking IRA Withdrawals When You Don’t Need To?

| May 28, 2020 | CARES Act, IRA, Secure Act |

The CARES Act waived all required minimum distributions (RMDs) from retirement accounts for this year. This includes withdrawals from traditional IRA’s, SEP IRA’s, and SIMPLE IRA’s, as well as 401(k), 403(b) and Governmental 457(b) plans.  And, this relief applies to both retirement account owners, as well as to beneficiaries that may be taking stretch distributions.

What this means is that if you do not need the withdrawals to meet your monthly expenses, you can leave your retirement accounts alone for the remainder of the year.  I am sure that many of my clients, like myself, have seen a decline in their retirement accounts due to market volatility and uncertainty during the beginning of the year after high balances at the end of 2019 (when RMDs would have been calculated).  This ability to waive taking any RMDs in 2020 can allow your retirement accounts some time to recover.

If you’ve already taken RMDs this year, the IRS has not issued any guidance on whether or not these RMDs can be put back into the retirement account.  However, given past RMD relief issued by the IRS, there is a strong probability that it will be allowed.

If you would like some further guidance on this or perhaps the opportunity to review your retirement assets and retirement planning strategies, our law firm can help.  We have affiliated financial professionals who have helped numerous clients with their IRA and retirement planning.  Simply contact our office or attend one of our workshops for more information.