2020 RMDs Now Optional

Stoney Creek Advisors |

We hope you are staying well and safe. We’re still working remotely and have managed to keep ourselves and our families healthy. Although it is still business as usual around here, we’re hopeful that we can get back in the office soon; we’re looking forward to seeing you for annual reviews and any other needs you may have.

In a recent email from us about the CARES Act, you may have noticed that Required Minimum Distributions (RMDs) have been suspended for 2020. You are receiving this note because you have been identified as someone who would normally need to take RMD(s), and we wanted you to know your options:

1. Take it. You are welcome to take your RMD if you’d still like to have the money sent to you. The same rules regarding taxation still apply (10% minimum for Federal + state minimum).

2. Don’t take it. You can choose not to take your RMD this year if you don’t want the money. You will not pay taxes on it or be penalized for not taking it.

3. Put it back. Already took your RMD? You can put it back into your IRA without penalty (called an “indirect rollover”).

4. Beneficiary IRAs. You can choose not to take your RMD this year if you don’t want the money; however, if you’ve already taken the money, you cannot put it back into a beneficiary IRA.

What this means for you:

Heather won’t be pestering you about your RMDs this year!

If she has already sent you forms for them, you can either shred them, or she will call to verify your choice to take the RMD when she receives them.

If you still wish to take yours, please pester her instead! (Please note that TD RMDs are not sent out without a verbal request from you!)

Why this is IMPORTANT (AUTOMATIC RMDs):

If you have an automatic RMD scheduled with an annuity company (one that pays out every year at the same time without submitting a new verbal or written request each time), it will still come to you unless we request it not to!

If you wish to cancel your auto-RMD this year, please contact Heather to let her know, and she will make the request to cancel on your behalf. Please do not call the company directly—while it is thoughtful of you to save Heather the call, she will not have accurate records in her system about your withdrawal, which could make tax time confusing next year. She’s here to do this for you—please put her to work if you need her!

If you have any further questions about RMDs or any other aspects of your accounts, please give the office a call (248-266-2900) or call Heather directly at 248-251-3431. And don’t forget to leave a message or email if you can’t get through; we are returning missed calls promptly after the voicemail notification comes through to us at home.