No RMD's in 2020

[SecondCor521]

I called them. In one case it was an IRA and for the other a company 401K so I had to speak to 2 different reps but they seemed to be aware of what to do.....I had called a few days earlier and the 401K was unaware so I gave them a few days and they came through. Be good to verify tho I believe VG sends a letter in January advising you of coming yr RMD amount but may have to verify the autowithdrawal part independently.

Thank you!

 

[The Cosmic Avenger]

Huh! Fidelity seems pretty certain:

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.

 

[fandk]

This provision of the CARES Act is supposed to apply to the federal gov's Thrift Savings Plan (TSP). I have not been able to find any information as to when they will institute this provision. As it currently stands, if you change your RMD withdrawals from monthly by stopping them for the year, you are put in a new status that appears entirely bad.



If anyone finds information about when the feds will get their act together on this, I'd be much obliged.



I just received my April RMD from the TSP yesterday (post-CARES Act). A call to the TSP help-line was pleasant, but uninformative. In contrast, I was able to stop my Vanguard withdrawals.

 

[yclipse]

The performance of the stock market YTD underscores one point when accounts have ended the year strong: If you normally space out your RMDs in a normal year, or if you wait until later in the year, you should still figure your RMD for the year in January, and consider selling what needs to be sold then even though you will retain the cash in your account until you need to distribute it. Many people are going to be squeezed now that their assets are 20-30% below what they were on December 31, 2019. Those are the people who will not benefit from the suspension of RMDs because they need their Ds.

 

[Nightingale9]

I agree. QCDs are still allowed in 2020 if you are over 70-1/2.