A good many people have a sizable portion of their retirement account(s) invested in stock mutual funds & other such equity investments.
If you will recall, as a result of the 2008 market crash, RMD's from retirement accounts were suspended for the 2009 tax year.
This was done so people wouldn't have to excessively draw down their accounts, using the (then) extremely low security prices to satisfy their 2009 RMD's.
The extreme market plunge of the past few weeks has me wondering if such an RMD suspension might be in the offing for 2020.
The RMD calculation for the 2020 tax year is made by using the 12-31-19 account FMV, in which stock prices were then at near record highs.
Its still early in the year & most people have probably not yet taken their RMD(s) for 2020. I know most of my clients have not.
Our political leaders might just think it appropriate to suspend RMD's for 2020 under these circumstances.
If you will recall, as a result of the 2008 market crash, RMD's from retirement accounts were suspended for the 2009 tax year.
This was done so people wouldn't have to excessively draw down their accounts, using the (then) extremely low security prices to satisfy their 2009 RMD's.
The extreme market plunge of the past few weeks has me wondering if such an RMD suspension might be in the offing for 2020.
The RMD calculation for the 2020 tax year is made by using the 12-31-19 account FMV, in which stock prices were then at near record highs.
Its still early in the year & most people have probably not yet taken their RMD(s) for 2020. I know most of my clients have not.
Our political leaders might just think it appropriate to suspend RMD's for 2020 under these circumstances.
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