A Note on RMD Changes

A Note on RMD Changes

Remember that there are no mandatory RMDs  – “Required Minimum Distributions” — for the 2020 tax year, which is a Covid19-related reprieve. This applies to all IRAs, including Beneficiary IRAs.

In another change, the 2019 tax year is the last one for which the age 70½ is the magic age for starting RMDs – the age has been increased to 72. Also the that the government restriction on traditional IRA contributions applies has been changed. Because of the SECURE Act in late 2019, beginning with the 2020 tax year, those over age 70½ will be able to contribute to a traditional IRA provided they have compensation equal to at least the amount of the contribution (spousal IRA rules will remain in effect). Keep in mind that if you’re using a back-door Roth IRA strategy for 2019, the age 70½ rule still applies.

Blue Spark Capital Advisors

We're a fee-only Registered Investment Advisory and financial planning firm based in New York City and the Berkshires.

We specialize in working with women after divorce, death of a spouse, or other life transitions such as retirement or job change. We provide financial planning and investment management services.

We believe in a holistic approach. Movement in each piece of your financial plan impacts the others, so we consider your entire picture.

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130 West 19th Street (8th Floor)
New York, N.Y. 10011
(212) 537-3899

93 Church Street
Lenox, Mass. 01240
(413) 551-7000

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