In addition to important provisions supporting individuals and businesses during this challenging period, the recently passed CARES Act also suspends required minimum distributions (RMDs) for 2020
The relief provided by this provision is broad and applies to traditional IRAs, SEP IRAs and SIMPLE IRAs, as well as 401(k), 403(b) and governmental 457(b) plans. Furthermore, the relief applies to both retirement account owners themselves and to beneficiaries taking stretch distributions.
Since we’ve been experiencing volatility in recent weeks, this change allows retirement portfolios that have experienced recent declines time to potentially recover and might allow certain clients to draw income from more tax-efficient sources.
If you’ve already taken your RMD for 2020, there are strategies available that can allow you to return the distribution to your retirement account with no tax consequences. Please contact me for more information.
If you haven’t taken a distribution yet, you don’t need to. Let’s talk about some new strategies resulting from the stimulus bill that may be beneficial to you.
If you have any questions about your RMDs or your overall retirement income plan, please reach out. We can work together with your tax and legal professionals to determine how this legislation affects you directly. In the meantime, I am thinking of you and your family and wishing you all good health.
Tyler has been in the financial services industry since 2004 and with Sandstone Wealth Management and Heartland Bank since 2009. He is Series 7, 66 and Insurance licensed to assist his clients with all their investing, financial planning, and insurance needs. Tyler was recently named to the Forbes List of America's Top Next-Generation Wealth Advisor, which recognizes advisors from national, regional, and independent firms. Tyler graduated from the University of Nebraska-Lincoln with a Bachelor’s Degree in Diversified Agriculture and was born and raised in the Nebraska Sandhills. This gives him an intimate knowledge and understanding of his farming and ranching clients. Tyler is married to Rachel, who earned her Doctorate of Pharmacy from the University of Nebraska. They have two children, Camilla and Cooper. Away from business, he enjoys officiating high school basketball in the winter as well as golfing and team roping in the summer.
