Good news! The new CARES Act made several retirement-account (RMD) tax-law changes that can save you a lot of money.
To take advantage of these changes, there are two totally-legal, powerful strategies that you can put to use.
What are they?
We’ll give you all the money-saving details when you read the full article.
IMPORTANT: Be aware that the new rules apply only to tax-year 2020!
Strategy #1: Undo your 2020 RMD.
The good news. Because we’re in the midst of the COVID-19 pandemic, Congress has waived all RMDs you’ll normally have to take for tax-year 2020.
The bad news. The RMD tax-law change doesn’t have a repayment provision. Which means if you took out your RMD before the tax-law change, you’re probably out of luck.
More good news. Hang on a second. There’s still hope. You see, if your distribution qualifies, you have the chance to take advantage of two loopholes that let you put the cash back into your RMD without any consequences to you!
Don’t miss this chance to read
COVID-19: Two New Retirement Account Strategies
You Need to Know Now
Strategy #2: Do a Roth IRA conversion.
If you act in tax-year 2020, a Roth conversion may be perfect for you.
You see, if your Roth IRA conversion also qualifies as a conronavirus-related distribution, you can spread the conversion income over three years.
This might let you pay a lower tax rate than you’d pay on a lump-sum inclusion.
Don’t miss this chance to read
COVID-19: Two New Retirement Account Strategies
You Need to Know Now