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    Ira disbursements, rmd

    I am at the age where I must take money from traditional IRA and pay federal income tax on the amount. Feds are considering lowering or eliminating payroll withholding tax while the virus situation is ongoing in this country. Taking the RMD now means selling investments within my IRA at considerable loss. Personally my family does not need the RMD funds. Pausing RMD?s and/or the income tax would be a great help for us older folks living on fixed incomes.
    You C.A.N.
    Conquer Adversity Now

    #2
    Are you talking about your 2020 RMD? Because if so, I believe he regulations say you can wait until the end of the year. This is a poor moment to do any selling. Check with someone more knowledgeable than me. No one is going to pause the income tax.

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      #3
      Actual tRUMP mentioned that they may be setting the IRS filing deadline date for 2019 income taxes back but I have not seen anything yet.

      (KLD)
      The SCI-Nurses are advanced practice nurses specializing in SCI/D care. They are available to answer questions, provide education, and make suggestions which you should always discuss with your physician/primary health care provider before implementing. Medical diagnosis is not provided, nor do the SCI-Nurses provide nursing or medical care through their responses on the CareCure forums.

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        #4
        Consider an in-kind transfer to a taxable account to avoid selling?

        https://www.kiplinger.com/article/retirement/T055-C000-S004-shift-stock-to-satisfy-your-rmd.html

        You could also convert it to a Roth if you can afford the tax hit but you'll still need to take this year's RMD.
        Last edited by Iolas; 13 Mar 2020, 8:53 PM.

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          #5
          Thanks Iolas. Great info, will consider this for this tear’s RMD.. Prosperous investing to all.
          You C.A.N.
          Conquer Adversity Now

          Comment


            #6
            Take a look at this article from CNBC:
            Coronavirus relief bill relaxes rules on retirement savings
            https://www.cnbc.com/2020/03/25/what...etirement.html
            by Darla Mercado
            March 25, 2020

            KEY POINTS
            • This year, you?ll be able to take a coronavirus-related distribution of up to $100,000 from your retirement plan or IRA without the 10% early withdrawal penalty, according to the most recent version of the bill.
            • The bill also relaxes the rules around retirement-plan loans, allowing you to borrow up to $100,000 from your 401(k). That?s double the amount you can normally take.
            • Retirees who would normally take required minimum distributions from their retirement savings can waive them for 2020.

            ​NL

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              #7
              Yes! You do not have to take the RMD in 2020 as part of the CARES Act due to Covid. You can check this on the IRS web site. Unless things have changed any person considered 100% disabled as on SSDI can take money out of their IRA without the penalty. You will pay taxes on the amount removed but no penalty.
              Courage doesn't always roar. Sometimes courage is the quiet voice at the end of the day saying, "I will try again tomorrow."

              Disclaimer: Answers, suggestions, and/or comments do not constitute medical advice expressed or implied and are based solely on my experiences as a SCI patient. Please consult your attending physician for medical advise and treatment. In the event of a medical emergency please call 911.

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