The CARES Act: What You Need To Know About RMDs & Rebates

Will You Benefit From the CARES Act? What You Need to Know.

April 13, 2020

Old Peak Finance - Will You Benefit From the CARES Act? What You Need to Know.

Will You Benefit From the CARES Act? What You Need to Know.

April 13, 2020

What You Need To Know About RMDs & Recovery Rebates

Hi, I'm Molly Stanifer, Financial Advisor at Old Peak Finance, as part of the recently passed Cares Act we'd like to briefly review a couple parts which may have an impact to you changes made to the Required Minimum Distributions (or RMDs) and the Recovery Rebates.

If you're 72 or older this year, you do not need to take your RMD in 2020. As a reminder, the entire amount of your RMD is ordinary income. So if you have the funds outside of your IRA to support your living expenses, it may make sense to defer your RMD this year. This also includes inherited IRAs.

Another part of the Cares Act includes Recovery Rebates. There is a $ 1,200 eligible rebate for single filers and $ 2,400 eligible rebate for married files. Your rebate increases by $500 for each child you claim on your return. Whether you receive the full rebate, partial or none at all, is based on your income, your AGI of your most recently filed tax return in either 2018 or 2019.
The income phase-out begins at $ 75,000 for single filers and $ 150,000 for married filers.

Please let us know if we can answer questions more specific to you or visit oldpeakfinance.com

The adverse economic impacts of the COVID-19 pandemic have affected industries and businesses across the country. Millions of Americans are experiencing job loss, reduced or no income, and uncertainty for the future. In response, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was recently signed into law. The legislation offers immediate financial relief to a variety of sectors of the community, including small businesses, hospitals, and education, as well as individuals and families.

What can you expect from the relief package? View our summary of two provisions that may affect you: changes to required minimum distributions (RMDs) and recovery rebate checks for individual and married tax filers. Hear from Molly Stanifer CFP®, Financial Advisor at Old Peak, about the CARES Act:

Learn more about who’s eligible for a rebate check and if and how you can benefit from a deferred RMD from your IRA this year. Contact us if you have questions specific to your situation, and we’ll be happy to guide you through your options.

A transcript of this audio can be found here.

Transcript

The CARES Act: What You Need To Know About RMDs And Recovery Rebates

Hi, I'm Molly Stanifer, Financial Advisor at Old Peak Finance, as part of the recently passed Cares Act we'd like to briefly review a couple parts which may have an impact to you changes made to the Required Minimum Distributions (or RMDs) and the Recovery Rebates.

If you're 72 or older this year, you do not need to take your RMD in 2020. As a reminder, the entire amount of your RMD is ordinary income. So if you have the funds outside of your IRA to support your living expenses, it may make sense to defer your RMD this year. This also includes inherited IRAs.

Another part of the Cares Act includes Recovery Rebates. There is a $ 1,200 eligible rebate for single filers and $ 2,400 eligible rebate for married files. Your rebate increases by $500 for each child you claim on your return. Whether you receive the full rebate, partial or none at all, is based on your income, your AGI of your most recently filed tax return in either 2018 or 2019.
The income phase-out begins at $ 75,000 for single filers and $ 150,000 for married filers.

Please let us know if we can answer questions more specific to you or visit oldpeakfinance.com

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This article is not intended to provide tax, legal, accounting, financial, or professional advice. Readers should seek advice from qualified professionals who can review their specific circumstances. Old Peak Finance endeavors to provide information that is accurate and current. However, we cannot guarantee that this information has not been outdated or otherwise rendered incorrect by new research, legislation, or other changes. Old Peak Finance has no liability or responsibility to any individual or entity with respect to losses or damages caused or alleged to be caused, directly or indirectly, by the information contained on this website.

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