In light of the SECURE Act signed by President Trump in December 2019, the IRS has issued Notice 2020-6, which provides guidance to financial institutions on reporting required minimum distributions (RMDs) for 2020. Financial institutions must notify IRA owners of any RMDs by January 31, 2020, but the SECURE Act increased the age requirement for RMDs from 70 ½ to 72. (See our January 27 Tax Update for more information on the increase to RMD age.) Due to the short time frame, Notice 2020-6 states that if a financial institution has issued an RMD statement to an IRA owner who will attain age 70 ½ in 2020, the IRS will not consider the statement to be incorrect; however, the financial institution must notify the IRA owner no later than April 15, 2020, that no RMD is required for 2020.
If you wish to discuss any of the matters in this update in more detail, please contact Chuck Marston, Rich Pacella, Danelle Stewart, or Tyler Feith at cmarston@srsnodgrass.com, rpacella@srsnodgrass.com, dstewart@srsnodgrass.com or tfeith@srsnodgrass.com or 724-934-0344.
Posted 1/29/20
