Summary of the Temporary Waiver of Required Minimum Distribution Rules for Certain Retirement Plans and Accounts

Below is a summary of one of the provisions of Title II - Rebates and Other Individual Provisions and Business Provisions from the Coronavirus Aid, Relief and Economic Security Act (CARES Act).
 

Summary

• Waives the requirement for minimum distributions from certain retirement plans.

Detailed Analysis

Changes to Plan Requirements
Required minimum distributions (RMDs) are waived for defined contribution 401(a) plans, 403(b) plans, governmental 457(b) plans and IRAs for calendar year 2020. The waiver applies to 2019 RMDs that are required to be made by April 1, 2020 (if not already made in 2019) and to 2020 RMDs that are required to be made by April 1, 2021. 
 
For purposes of determining RMDs after 2020, an individual's required beginning date is determined without regard to this 2020 waiver. In addition, for purposes of the five-year and ten-year distribution periods that apply to certain beneficiaries, these periods will be determined without regard to calendar year 2020. 
 
Rollover Distributions
If an eligible rollover distribution paid in 2020 would have been a RMD for 2020 but for the waiver, the distribution is not subject to the direct rollover rules, 20% mandatory withholding requirement, or the 402(f) notice.

This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader’s specific circumstances.