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Just a Reminder - No RMD required in 2020 / Only 1 required in 2021

edited September 16 in Other Investing
“RMDs are waived for 2020, which means they are effectively canceled. You do not have to receive two RMDs in 2021. This is true even if 2020 is your first RMD year and, therefore, not required until April 1, 2021. If 2020 is your first RMD year, the first RMD you have to take will be for your second RMD year (2021) and is due December 31, 2021.”

Old news I thought worth repeating. Good to know you only need to take 1 RMD next year.

https://www.fedweek.com/fedweek/tsp-expands-guidance-on-required-minimum-withdrawal-suspension/

Comments

  • edited September 16
    Also, due to the SECURE act, you can make a contribution to a Traditional IRA IF YOU HAVE EARNED INCOME (in other words “job income,” not pension/investment income) even if over 70-and-a-half (or 72-and-a-half....probably the latter).

    My dad made a contribution into his TDA IRA account because he saw the option re-appear recently...but he doesn’t have any earned income. Now TDA has to refund it, and calculate the “earnings” on it (he deposited it last Friday)....*face palm.* He promised to check with me next time (I manage my parents’ portfolios).
  • @hank Thanks. After my ex-federal-colleagues were hit with the mandatory SS tax deferral and subsequent pay back, I admit I sanity checked to make sure that I wouldn't have to take two RMDs in 2021. Some people thought the SS deferral was the same as Obama had done and would be covered from the general fund. I almost got paranoid enough to go ahead and RMD this year. We pay a lot of marginal tax on our RMDs as it is without two in one tax year.
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