Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
The SECURE and CARES Acts Change Required Minimum Distributions
A key aspect of saving for retirement through qualified retirement plans and IRAs is deferring taxes until required minimum distributions (RMD) begin. Even with Roth IRAs, beneficiaries who inherit them must also follow RMD rules despite the tax-free treatment of the distributions. The failure to take RMDs can result in a 50% penalty. The SECURE Act (P.L. 116-94) and the CARES Act (P.L. 116-136) made dramatic changes in RMD rules for 2020 and beyond.
Changes for 2020
The CARES Act provides a waiver for RMDs from defined contribution plans (e.g., 401(k) plans) and IRAs for 2020. Those who would otherwise be required to take an RMD for 2020 need not do so. The waiver also applies to the 2019 RMD for an individual who has a required beginning date of April 1, 2020 (someone who attained age 70½ in 2019 but did not take the first RMD by Dec. 31, 2019, postponing it to April 1, 2020). Of course, distributions to those subject to RMDs can exceed required amounts at any time.
The waiver for 2020 does not change the required beginning date. For example, if an employee attained age 70½ before Jan. 1, 2020, and retires in the 2020 calendar year, that employee's required beginning date is April 1, 2021. The employee is not required to receive an RMD for 2020 before April 1, 2021, but must still receive the RMD for the 2021 calendar year by Dec. 31, 2021. Such individual may decide to take the first RMD in 2020 to avoid having to take two RMDs in 2021.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
'Huguenot LLC v. Megalith Capital Group Fund I, L.P.': A Tutorial On Contract Liability for Real Estate Purchasers
In June 2024, the First Department decided Huguenot LLC v. Megalith Capital Group Fund I, L.P., which resolved a question of liability for a group of condominium apartment buyers and in so doing, touched on a wide range of issues about how contracts can obligate purchasers of real property.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
CoStar Wins Injunction for Breach-of-Contract Damages In CRE Database Access Lawsuit
Latham & Watkins helped the largest U.S. commercial real estate research company prevail in a breach-of-contract dispute in District of Columbia federal court.