Care Act:For 2020

Ratesaver | Aug 27, 2020 | 67 posts since 2013

The care act allows you to not take your distribution of IRA's and 4o1ks ... Andrews FCU recently addressed this issue with a letter to not take or to take it. For the yr. 2020 if you have already received it you can send it back. It is great that this FCU addressed it and thank you to them... MY question is where are the rest of the banks and credit unions like Pen Fed... Especially big ones the totally as of this date are abandoned the small guy with really low CDs...

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Ally6770 | Aug 27, 2020 | 2,940 posts since 2010

I called early in the year and had to sign a paper at Navy and Inova but I had forgotten to call Pen Fed for a small inherited IRA from my mom and I just had to call. The other credit unions are all Roths so nothing to do there. I remembered and called Pen Fed yesterday. I just had to tell them I did not want it and they did it over the phone. Nothing to sign there. Very convenient. I think other credit unions may take the cancellation over the phone call also this late in the year. I just did the others so early in the year and they did not have time to address it.

Ratesaver | Aug 28, 2020 | 67 posts since 2013

Thanks for the info Ally i will call today. I was kind of waiting till later in the yr. as my distribution isn't until Dec.

RickZ | Aug 28, 2020 | 92 posts since 2010

Thanks for the reminder Ratesaver and Ally6770. I have an inherited IRA CD at Ally. I called them right after the Care Act passed and was told that due to the Care Act my RMD scheduled for December 2020 would automatically be waived. I always questioned that response as it didn't really make sense to me - how could they just assume I didn't want to take my RMD. I just called Ally now and was told that, not surprisingly, you have to affirmatively waive your 2020 RMD by telephone, which I just did. Given their initial wrong advice, I decided to send them an email to memorialize the change in writing.

As you may know, the IRS earlier announced that you can reverse a 2020 RMD but that reversal option expires on 8/31/20 so if you want to do a reversal you need to act fast.

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