In general, contributions can be made to your IRA for a particular year at any time during the year, or by the due date for filing your return for that year. Because the due date for filing Federal income tax returns has been postponed to July 15, 2020, the deadline for making contributions to your IRA for 2019 is also extended to July 15, 2020.
Required Minimum Distributions from all qualified retirement accounts (that would include IRA’s, 401(k)’s 403(b)’s spousal rollover ORA’s and Inherited iRA account, etc.) have been suspended for 2020. You will not be required to withdraw the minimum this year. Your accounts can rest and hopefully recoup some of their losses.
Estates and trusts which are the beneficiaries of retirement accounts, will also benefit from this 2020 moratorium. For estates and trusts which make take withdrawals over no more than 5 years, 2020 will not count as one of the five(5) years.
Similarly under the new SECURE Act, which governs distribution of retirement accounts for decedents who died in 2020, if the beneficiary was required to take withdrawals over no more than 10 years, 2020 will not count as one of the 10 years.
We hope this information is useful to you. If you have more questions and would like to arrange for a consultation that can be arranged via phone, Facetime or Zoom. Rosenthal & markowitz remains open to serve our clients and the community as best we can.
Announcement regarding Retirement Accounts last revised 4.15.2020.
The information provided in this Announcement is not intended to be specific legal advice or to be followed without individualized, professional guidance and assistance.
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