1. Use your 2020 RMD waiver
Required minimum distributions are good for the nation but not so great for the individual. Basically, you’re ‘forced’ to withdraw money out of your accounts in order to pay income taxes. Attempts to avoid this will lead to steep penalties, hence the ‘forced’.
In comes the CARES Act which has waived RDMs for 2020. You can keep your money in your account this year, meaning you won’t have to pay any income taxes on it. Basically, you won’t be forced to withdraw money when market values are down, as that could have negative long term consequences- something that the government is well aware of.
So, if you’re over the age of 72 and thought you needed to withdraw RDMs, you can rest easily now.
