CARES Act Waives Required RMDs for IRAs and Retirement Plans

20 July 2020

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (P.L. 116-136) waives required minimum distributions (RMDs) during 2020 for IRAs and retirement plans, including beneficiaries with inherited accounts. This waiver includes RMDs for individuals who turned age 70 1/2 in 2019 and took their first RMD in 2020. Roth IRAs do not require withdrawals until after the death of the owner. The IRS has reminded seniors and retirees that they are not required to take money out of their IRAs and workplace retirement plans this year. The CARES Act provisions apply to most retirement plans, including traditional IRAs, SEP IRAs, SIMPLE IRAs, 401(k) plans, 403(b) plans, 457(b) plans, profit sharing plans and other defined contribution plans. The RMD suspension does not apply to qualified defined benefit plans.

If an individual has already taken an RMD in 2020, including someone who turned 70 1/2 during 2019, the individual will have the option of returning the distribution to their account or other qualified plan. More information on the CARES Act and retirement plans, including FAQs, can be found: