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What if I Already Took My 2020 RMD?

The new stimulus plan suspends required minimum distributions for 2020. Contributor Natalie Choate offers advice to early birds who've already taken RMDs for the year.

The CARES Act suspends required minimum distributions, or RMDs, for the year 2020 for all qualified retirement plans and IRAs. Presumably this component of the stimulus bill is intended to help retirees and beneficiaries who would otherwise be forced to take 2020 RMDs that were computed based on the bloated market values of Dec. 31, 2019, from retirement plans whose value was smashed by the coronavirus-triggered market plunge in 2020.

So, this one's easy, right? Just don't take an RMD in 2020 and move on to 2021. The devil is in the details that advisors will need to wrestle with, though. We can probably look back to the prior one-year suspension of RMDs (in 2009) to predict how this one will work.

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