Let's take a look at the Cares Act, signed into law on March 27 of 2020.
I'm having conversations with many of my clients about 2020 RMD waivers and Roth IRA conversions. First, the act includes a waiver of required minimum distributions or "RMD"s for 2020.
This waiver applies to IRAs and Inherited IRAs - both Traditional and Roth as well as company savings plans like 401ks and 403Bs.
There are no special qualifications for having an RMD waived. It applies automatically.
Finally, if the market is down, now might be a good time to consider Roth IRA conversions as a bonus in 2020.
Clients can convert all or a portion of their Traditional IRA to a Roth IRA without concern about taking the RMD prior to the transaction.
These details can be very confusing and it's time sensitive.
Please contact us for more information: Walter Pardo - Wealth Financial Partners