Help for older Americans caught between a falling stock market and low interest rates.
The Coronavirus stimulus package offers relief for retirees, offering a RMD waiver and penalty-free 401(k) withdrawals.
During the last financial crisis, when the stock market crashed, Congress suspended RMDs for 2009.
You are required by law to take withdrawals from your IRA, SIMPLE IRA, SEP IRA or retirement plan such as a 401(k) once you reach 72. (It was 70½ before 2020.) But the CARES Act waives RMD payments for 2020, including for inherited IRAs. Additionally, the waiver covers the first RMD, which individuals may have delayed from 2019 until April 1, according to a summary of the Act’s provisions about rmd rules and RMD Seniors related.
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