Peck Bulgin Wealth Management

Our Commentary

Waiving Required IRA Distributions

Written by Casey Bulgin, CFP®, AEP®, CRPC®
Vice President – Investments
Peck Bulgin Wealth Management of Raymond James

This is a friendly reminder since most of you already know by now that you are not required to take a minimum distribution from your IRA in 2020 if you are over the age of 70 ½ (now the age is 72 under the SECURE ACT passed earlier this year). Since we are getting close to the end of the year, and that is when many individuals take their required distribution, it makes sense to reiterate this provision for those that may have overlooked it.

The Coronavirus Aid, Relief and Economic Security (CARES) Act, was recently passed into law earlier this year to help Americans affected by the virus and stimulate the economy. One of the provisions in this act relates to the ability to forgo the “requirement” that IRA and 401(k) owners over the age of 70 ½ (72 now with the passing of the Secure Act) must take a minimum amount out of their retirement account to satisfy IRS guidelines.

Can I Still Take it?

Absolutely. This waiver simply applies to those who are forced to take this distribution and would rather not. If an account owner does not need the distribution and would prefer not to be taxed (at ordinary income rates) on something they don’t really need then this is a good time to waive that distribution. Many Americans rely on this distribution for living expenses so this waiver may not apply to those who will need to take this distribution even though they don’t have to.

Does this waiver apply to “Inherited” IRA’s?

Yes. This waiver extends to inherited or beneficiary IRA’s as well.

Please consult with your financial or tax professional before making any decisions as it relates to your specific situation. As always, please don’t hesitate to reach out to our office for any help on this topic or any questions you have regarding your financial situation.

Peck Bulgin Wealth Management
of Raymond James
245 Riverside Avenue, Suite 500. Jacksonville, FL 32202

While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of Raymond James, we are not qualified to render advice on tax matters. You should discuss tax matters with the appropriate professional. Examples listed are hypothetical in nature and for illustrative purposes only. Actual investor results will vary.

Any opinions are those of Casey Bulgin and not necessarily those of Raymond James & Associates, Inc. This information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.