The CARES Act Impact on IRAs
The CARES Act (Coronavirus Aid, Relief and Economic Stimulus) recently passed by the Federal Government includes several items that will affect retirement accounts, including IRA accounts with South Shore Bank.
You may already know that the income tax filing date was extended from April 15th to July 15th. This change also includes an extension for making your 2019 IRA contribution to July 15th as well.
Other relief is provided to IRA account holders who are over 70 ½ and must take a Required Minimum Distribution (RMD) each year. The requirement to take the distribution this year (2020) has been waived. If you are currently set up to take an automatic Required Minimum Distribution from a South Shore Bank IRA, contact us if you wish to discontinue receiving your RMD for 2020. IRA account holders who turned 70 ½ in 2019 won’t have to take an RMD in 2020 and may not have to take their 2019 distribution if they haven’t already.
It is also important to note that earlier this year, the new Secure Act changed the age for RMDs from 70 ½ to 72 starting in 2020.
For more detailed information, including provisions for those individuals that may qualify for “Coronavirus-Related Distributions”, please review the CARES Act Overview and FAQs or call our Customer Information Center at 781-682-3715.