Legislation to Suspend RMD and taxing SS

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Locked
User avatar
Topic Author
midareff
Posts: 6891
Joined: Mon Nov 29, 2010 10:43 am
Location: Biscayne Bay, South Florida

Legislation to Suspend RMD and taxing SS

Post by midareff » Sun Apr 05, 2020 8:28 am

Does anyone have an inside track on whether this or any parts of it have become law as of yet?

The legislation based on S. 3527 bill text at Sen. Markey’s website, and which has bipartisan support, would do the following.

Suspend otherwise-required 2020 RMDs from qualified retirement plans, 403(b) plans, governmental 457(b) plans, and individual retirement arrangements (IRAs).
2020 will be disregarded for purposes of the 5-year period for required depletion of an inherited IRA or retirement plan account.
Mandatory withholding (e.g., 20%) would not be applied to 2020 amounts withdrawn from these retirement savings arrangements, exempt up to such amount(s) that would represent RMDs if not for the 2020 exemption.
Retirement plans may operationally comply with these provisions, but must amend for the changes by the last day of 2022 plan years (2023 plan years for governmental plans).
An individual’s required beginning date for RMDs (generally April 1 of the year after attainment of RMD age or, if later, the year of retirement) would not be altered by a 2020 suspension.

User avatar
David Jay
Posts: 8621
Joined: Mon Mar 30, 2015 5:54 am
Location: Michigan

Re: Legislation to Suspend RMD and taxing SS

Post by David Jay » Sun Apr 05, 2020 8:56 am

midareff wrote:
Sun Apr 05, 2020 8:28 am
Suspend otherwise-required 2020 RMDs from qualified retirement plans, 403(b) plans, governmental 457(b) plans, and individual retirement arrangements (IRAs).
This was a provision of the recently enacted CARES legislation. No RMD required for 2020.

[edit]
midareff wrote:
Sun Apr 05, 2020 8:28 am
2020 will be disregarded for purposes of the 5-year period for required depletion of an inherited IRA or retirement plan account.
According to the chart on the Kitces blog, the 5 year provision is suspended as well. See chart at link here (scroll to the bottom): https://www.kitces.com/blog/analyzing-t ... -pandemic/
Last edited by David Jay on Sun Apr 05, 2020 9:14 am, edited 2 times in total.
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

Silk McCue
Posts: 4651
Joined: Thu Feb 25, 2016 7:11 pm

Re: Legislation to Suspend RMD and taxing SS

Post by Silk McCue » Sun Apr 05, 2020 9:04 am

Nothing has changed in regards to the Payroll Tax withholding although it has been and continues to be discussed.

I’ve seen nothing regarding suspending “taxing SS“ which you mentioned only in your title.

Cheers

afan
Posts: 4879
Joined: Sun Jul 25, 2010 4:01 pm

Re: Legislation to Suspend RMD and taxing SS

Post by afan » Sun Apr 05, 2020 9:44 am

Forum rules prohibit speculation on pending legislation before it has been signed into law. For those sorts of questions you need to look to other sites.
We don't know how to beat the market on a risk-adjusted basis, and we don't know anyone that does know either | --Swedroe | We assume that markets are efficient, that prices are right | --Fama

dkturner
Posts: 1585
Joined: Sun Feb 25, 2007 7:58 pm

Re: Legislation to Suspend RMD and taxing SS

Post by dkturner » Sun Apr 05, 2020 10:43 am

afan wrote:
Sun Apr 05, 2020 9:44 am
Forum rules prohibit speculation on pending legislation before it has been signed into law. For those sorts of questions you need to look to other sites.
The legislation in question was signed by the President on March 27.

Spirit Rider
Posts: 13163
Joined: Fri Mar 02, 2007 2:39 pm

Re: Legislation to Suspend RMD and taxing SS

Post by Spirit Rider » Sun Apr 05, 2020 5:59 pm

dkturner wrote:
Sun Apr 05, 2020 10:43 am
afan wrote:
Sun Apr 05, 2020 9:44 am
Forum rules prohibit speculation on pending legislation before it has been signed into law. For those sorts of questions you need to look to other sites.
The legislation in question was signed by the President on March 27.
No, the legislation in question was never even taken up.

The CARES Act is what was passed into law and signed by the President .

It only included the suspension of RMD in the title.

User avatar
LadyGeek
Site Admin
Posts: 63742
Joined: Sat Dec 20, 2008 5:34 pm
Location: Philadelphia
Contact:

Re: Legislation to Suspend RMD and taxing SS

Post by LadyGeek » Sun Apr 05, 2020 7:14 pm

This thread has run its course and is locked (question answered, the rest is proposed legislation). See: Politics and Religion
In order to avoid the inevitable frictions that arise from these topics, political or religious posts and comments are prohibited. The only exceptions to this rule are:
  • Common religious expressions such as sending your prayers to an ailing member.
  • Usage of factual and non-derogatory political labels when necessary to the discussion at hand.
  • Discussions about enacted laws or regulations that affect the individual investor. Note that discussions of proposed legislation are prohibited.
  • Proposed regulations that are directly related to investing may be discussed if and when they are published for public comments.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

Locked