Guidance on Waiver of 2020 Required Minimum Distributions

Sgroi Financial

In response to the coronavirus global pandemic, Congress passed the CARES Act in March 2020. A more-than-$2-trillion-emergency fiscal stimulus package, the CARES Act was enacted to ease the effects of the economic damage caused by the COVID-19 pandemic by providing a wide range of relief efforts to help individuals, businesses, healthcare entities, and state and local governments meet short-term cashflow demands. Among the many provisions provided by the CARES Act was the suspension of Required Minimum Distributions during 2020. However, since the act wasn’t passed until March 27, 2020, many individuals had already taken out their required amounts.

New RMD Rules

On June 23, 2020, the IRS leveled the playing field for people who took an RMD out in January of this year. “Guidance on Waiver of 2020 Required Minimum Distributions” (Notice 2020-51) allows anyone who took a distribution the opportunity to rollover that amount until August 31, 2020. who before were not allowed to do a rollover, and additionally those who took multiple RMDs through substantially equal payments. If account holders do not need their RMD for 2020, this would provide a potential growth benefit by returning the funds back into their investments.

If you have additional questions regarding the Notice 2020-51, our office is here to assist you.

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Sgroi Financial is a full service, independent financial planning firm proudly serving the Western New York area since 1971. We offer services that will help you achieve your financial goals including retirement planning, investment management, estate planning, college planning and insurance. We help individuals, families, retirees, working adults, young adults and business owners.

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Securities offered through Cadaret, Grant & Co., Inc., member FINRA/SIPC. Advisory services offered through Sgroi Wealth Advisory Group LLC, an SEC Registered Investment Advisor. Sgroi Wealth Advisory Group LLC, Sgroi Financial LLC, and Cadaret, Grant & Co., Inc. are separate entities.

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