Article By: Jason Henrich, CFP®

These last few weeks have been about as crazy as most have ever seen (at least since 2008-09). These times are miserable, there's no better way to put it. The Coronavirus has ripped its way through societies across the world, and caused mass disruption in global supply chains, governments, and companies everywhere we look. It has affected every type of investment out there; stocks, bonds, treasuries, oil...even gold, considered by many a safe haven, has shown volatility which raises doubts. 
CARES Act Waives RMDs For 2020

Much like the 2008 legislation stemming from the financial crisis, IRAs (including SEP and SIMPLE IRAs) will not be required to withdraw their RMD for 2020. This also applies to 401(k) plans, 403(b) plans, and 457(b) plans as well as Inherited IRAs.  Additionally, the use of the Qualified Charitable Distribution will still be allowed so if you are someone who had intended on using your 2020 RMD toward a qualified charity, you can still do so and the amount donated will still receive the preferential QCD tax treatment up to the maximum amount.

In addition to the RMD waiver for 2020, the waiver provision can also be used by those that elected the deferral strategy of their first RMD. In other words, those who turned 70 ½ in 2019 and delayed their RMD, expecting to pay by April 1st of 2020, will not need to take the 2019 RMD, nor will they have to take their 2020 RMD.

Lastly, if an RMD has been taken and you wish you hadn't done so, you may have the ability to 'roll it back' into a qualified account depending on a few factors. If this is the case, seek guidance from your preferred tax or financial professional to see if this is possible.
All physical locations of MBE Wealth Management are currently closed due to the order issued by Governor Evers.

In addition:

  • Communications/meetings with customer relationship managers and advisors will continue either over the phone or via teleconference. You will be able to continue to call your local MBE Wealth office as you have in the past as all phones will be forwarded appropriately.
  • Additional investments will need to be made electronically instead of dropping a check off at your local MBE Wealth office. Special accommodations may be made for business clients. Contact your advisor for further details if this applies to you.
  • Account maintenance and other administrative tasks will only be available through our electronic DocuSign system if a signature is needed.  

Most importantly, please know that we are here to help you navigate these difficult times. While face to face meetings may no longer be available, we are all in this together and thanks to technology we feel we will be able to help you with minimal disruption. 

Please call your local MBE Wealth office if you have any questions or concerns regarding the changes moving forward or if you have any immediate needs.
The current COVID-19 driven economic chaos reminds us that this time is different. But there are some lessons to be learned from the history of the last 3 recession/bear markets as well. Join Mike as he explores the early 80s, tech bubble, and 08 financial crisis recessions.
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