Many of us think of retirement as part of the natural order of things. Not long ago, this meant working until you’re about the age of 65, then living off a pension and Social Security benefits. Now, pensions have become less common, and the prospect of living into your 90s or longer has become more […]
There are Downsides to Delaying Required Minimum Distributions (RMDs)
Q. A few weeks ago, you wrote about SECURE 2.0 and some of the impactful provisions of the new law. Among them, you mentioned how the age when Required Minimum Distributions (RMDs) would need to start has increased to 73 for individuals who turn 72 after December 31, 2022. You also indicated that ten years […]
What Happens When You Inherit an IRA from a Non-Spouse?
Marty’s brother, Ed, passed away suddenly. He never got married or had children, so he passed everything, including his Individual Retirement Account (IRA), to Marty. During one of the most difficult times in his life, while grieving for his deceased brother, Marty had no idea about everything involved when it came to inheriting his brother’s IRA. Losing […]
Are RMDs Back This Year or Will They Be Waived Again?
Q. I turned 70 in November 2019. I was planning on taking my first required minimum distribution (RMD) in May 2020 (when I turned 70½) until the government waived 2020 RMDs. Is my first RMD now due by May 2021? What about my wife, whose first RMD deadline would be April 1, 2021? Also, I […]
Understanding the Changing RMD Landscape in 2020
Q. I understand that the rules for Required Minimum Distributions (RMDs) from workplace retirement plans and individual retirement accounts have changed this year due to the SECURE Act earlier in the year and the recently enacted CARES Act. This brings several questions to mind. For instance, should I take advantage of the 2020 RMD waiver? […]
Charitable Giving During the 2020 Tax Season
Dear Ernie and Jannette, We want to support our favorite local charities and small businesses as much as we can while they are reviving themselves from all the changes in their business environments. We would like to give now, but are wondering if the CARES Act or the new landscape of Required Minimum Distributions change […]