If you are 72 or older, you are normally required to make distributions from your retirement accounts (401k, IRA, 403b, etc).
The CARES act eliminated this requirement for 2020.
This is good news for many retirees for 2 reasons:
- Avoiding the taxable distribution will reduce their taxable income in 2020
- They can leave their tax deferred investments alone to rebound (it will happen) and grow tax free
If you made your required distribution in the past 60 days, you may be able to deposit it back into your retirement account (review the details of your situation with a professional).
If you are a Verisail client, you do not need to take action. We will be in touch as needed!