How ATLAS Can Help Now: How the CARES Act Impacts your IRA and RMDs for 2020

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How ATLAS Can Help Now: How the CARES Act Impacts your IRA and RMDs for 2020

The legislation in the Coronavirus Aid, Relief, and Economic Security (CARES) Act includes policy changes that impact Individual Retirement Accounts (IRA) owners and Required Minimum Distributions (RMDs) for the 2020 calendar year.

Those of you who are retirement account owners can use relief offered through the CARES Act by suspending 2020 RMDs that are not immediately needed. With the recent decline of the markets, the CARES Act allows retirees the ability to keep those funds in their account in order to potentially recover some of the market losses when the economy recovers.

Please find below two of the common questions our Investment Advisory team has received and some information to help answer them:

Can I suspend my RMD for 2020?

  • All RMD’s have been suspended for 2020.
  • Beneficiaries of retirement accounts are also eligible to suspend their 2020 RMDs.
  • Accounts that are not eligible for suspended RMDs include:
    • Defined Benefit Plans
    • Non-governmental 457(b) plans
    • Annuitized annuities held in an otherwise eligible plan
    • 72(t) Distributions


Can I return the RMD I received already?

  • For retirees who may already have taken your RMDs for 2020 (or for certain individuals who took 2019 RMDs timely in 2020), there are strategies for you to return these unwanted distributions by returning the funds to the original account using the 60-day-rollover rule or a Coronavirus-Related Distribution (for individuals directly affected by the COVID-19 virus).
  • Only one rollover contribution per year is permitted. The ability to make a rollover contribution of any RMDs received in 2020 only applies to IRA owners and not to any IRA beneficiaries or beneficial owners.


If there are specific questions on the law change related to the suspended RMD’s, please contact ATLAS Lifestyle Planning Group to see if your plan and your circumstances are eligible. Contact information can be found on the page linked or you can contact us here.


ATLAS has added additional services, including our Investment Advisory team, ATLAS Lifestyle Planning Group (LPG). This information is from our ATLAS LPG Partner, Michael Abbate. If you’d like to know more about ATLAS LPG, click here.


Disclaimer: Investment advisory services offered through ATLAS Lifestyle Planning Group (ATLAS LPG), a Registered Investment Advisor. ATLAS LPG will only provide investment advisory services in jurisdictions where it is registered as an investment adviser or exempt from registration. Insurance and annuities offered through ATLAS Risk Management Group (ATLAS RMG). ATLAS LPG and ATLAS RMG are separate entities and neither provides legal or tax advice.