The CARES Act: RMD Waivers & Other Facts to Know
When Congress passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the $2.2 trillion stimulus package became one of the largest bills ever passed through the legislative branch. And in it, there are certain provisions that affect retirement and tax planning rules for 2020. Specifically, there’s an increased focus on the waiver of retirement minimum distributions (RMDs). An RMD is the amount of money that’s required for you to withdraw from a retirement savings account when you hit a certain age. And while the recently passed SECURE Act increased the age limit for taking RMDs from 70 1/2 to 72, it’s important to note that this new waiver doesn’t apply to everyone in every situation. Here are some facts to know about the new RMD waiver, retirement planning, and other CARES Act provisions to better understand how they affect you.