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.