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 Daly

Tyler is a Financial Advisor with Raymond James. He is Series 7, 66 and Insurance licensed to assist his clients with all their investing, financial planning, and insurance needs. Tyler graduated from the University of Nebraska-Lincoln with a Bachelor’s Degree in Diversified Agriculture. Away from business, he enjoys officiating high school basketball, golfing and team roping. Check the background of this investment professional on FINRA's Broker Check.

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