With the Required Minimum Distribution waiver, Juan can skip his 2020 RMD and won’t need to worry about the penalty. Keep in mind that RMD withdrawals are typically not particularly onerous for most taxpayers, so this maneuver is only useful for those expecting a fairly significant increase in income. My research says that we won’t have to take the 2020 and the 2021 RMD’s next year. The CARES Act includes a temporary waiver for both: 2020 required minimum distributions (RMDs), including ones from IRAs, inherited IRAs, and employer-sponsored plans such as 401(k) plans. CARES Act RMD waiver examples for 2020. No. Skipping My RMD in 2020. Because of the COVID19 Virus, the government has granted a temporary waiver regarding RMD. Since retirees will be a year older than when they last took their RMDs, they’ll have to take out a slightly higher percentage from their retirement plans. Paul must receive his 2022 required minimum distribution by December 31, 2022, based on his 2021 year-end balance. Reply. With this reduced balance in the taxpayer’s retirement accounts, the calculated RMD for 2021 will be lower. The rules on when retirees must take required minimum distributions (RMDs) changed as of Jan. 1, 2020, thanks to the SECURE Act, which was signed into … Benz: And part of the idea too was I know that balances were really inflated at the end of 2019 and the RMD amount for 2020 would have been based on 2019 year-end balances. So, if I was 73 and my year-end balance was $350,000, my RMD (using current charts) would be $14,170. Since Paul had not reached age 70½ before 2020, his first RMD is due for 2021, the year he turns 72. In other words, it should be as if the 2020 RMD is not required at all and only the 2021 RMD will need to be taken next year. He had planned to take the entire amount out on December 31. You do not have to take your RMD this year. 2019 RMDs due by April 1, 2020, for individuals who turned … (You won't have to take a "double" RMD in 2021, just the regularly calculated amount.) Let’s take a look at three situations to see how the new rules play out. Juan (age 73) Juan’s RMD amount for 2020 was $4,500. Paul’s first RMD is due by April 1, 2022, based on his 2020 year-end balance. But RMDs will return in 2021. CJ C. May 1, 2020 • 2:45 pm.
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