Kutchins, Robbins & Diamond, Ltd. Certified Public Accountants and Advisors

CARES Act: Required Minimum Distributions Suspended

Stay informed on the latest tax and employment legislation updates during the Coronavirus outbreak.

Required Minimum Distributions Suspended

The Coronavirus Aid, Relief and Economic Security Act (CARES Act) provides that 2020 required minimum distributions (RMD’s), including distributions for a required beginning date in 2020 and distributions for a required beginning date in 2019 that have not yet been made in 2020, are waived for qualified plans and IRA’s.

This is primarily due to the decimated market values.

RMDs for participants who turned age 70-1/2 in 2019 and have not yet received their 2019 distribution also may be waived.

Beginning in 2020, the SECURE Act changed the new age at which RMDs must start to age 72. The increase in age does not apply to individuals who turned 70 ½ in 2019.
Qualified Charitable Distributions (QDCs) from IRAs are not affected by the SECURE Act; as a result, QCDs may still be taken from IRAs as early as age 70 ½ in 2020 and later.

Planning Point:

The income qualification for the $1,200/$2,400 cash payments from the government will be based upon 2020 income. If you waive any unpaid RMD’s from 2019 or your 2020 RMD’s, this may help get you below the $75,000/$150,000 thereby avoid a cutback in the tax credits allowed on your 2020 return.

If you have questions or need assistance to implement any of the provisions of this legislation, please don’t hesitate to contact any KRD team member. We will certainly do our best to help explain its provisions and how it impacts your specific situation.


Newsletter signup

Receive our informative Newsletters with valuable tax, financial and business
operations information.



Read the latest news
from KRD and find out more.

KRD Ranked by Forbes as one of America’s Top Recommended Tax Firms for 2021
Keep Up With Payables: Paying Bills in QuickBooks
How Do You Add Users in QuickBooks Online?

Request a callback

Would you like to speak to one of our financial advisors over the phone? Just submit your details and we’ll be in touch shortly. You can also email us if you prefer.

    I would like to discuss:


    1051 Perimeter Drive, 9th Floor
    Schaumburg, IL 60173

    Office: 847-240-1040
    Fax: 847-240-1055


    35 E. Wacker Dr., Suite 690
    Chicago, IL 60601

    Office: 312-201-6450
    Fax: 312-201-1286