A Safer Retirement and Environment – What We’re Implementing to Help Keep You Safe: READ MORE

Here at Pinnacle Retirement Group, we are adhering to state and local guidelines in order to protect both the health and safety of clients and staff. Keeping our clients and staff safe is our highest priority and we’re taking all appropriate measures to ensure a safe environment. Should you prefer to not meet face-to-face, we are continuing to serve our clients through virtual settings such as Zoom or phone calls.

We look forward to continuing to help individuals and families achieve their ideal retirements.

Pinnacle Retirement Group
(561) 629-7820

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RMD WAIVER AND ROTH CONVERSION RECHRACTERIZATIONS: TODAY’S SLOTT REPORT MAILBAG

By Ian Berger, JD
IRA Analyst

Question:

Good Morning,

We have a client that passed away in November of 2019 at the age of 85. Her beneficiaries would be required to take their RMD in 2020. Are they eligible under the CARES Act to forgo that RMD for this year?

Thank you,

Linda

Answer:

Hi Linda,

Yes, the CARES Act waiver of RMDs otherwise required for 2020 applies to beneficiaries.

Question:

If I convert today, do I have 1 year from today’s date to recharacterize? Or do I have until the end of calendar year 2021?

Warmly,

Greg

Answer:

Hi Greg,

Unfortunately, Roth conversions can no longer be recharacterized. That change was made by the Tax Cuts and Jobs Act of 2017. By contrast, Roth IRA contributions can still be recharacterized.

https://www.irahelp.com/slottreport/rmd-waiver-and-roth-conversion-rechracterizations-today%E2%80%99s-slott-report-mailbag

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