Posts by Financial Design Studio, Inc.

CARES Act: Required Minimum Distributions Waived For 2020 Required Minimum Distributions (RMDs) for 2020 are WAIVED; you do not have to take an RMD as you normally would. Background: Normally, if you’re over Age 70-½ (or Age 72 starting in 2020) you have to take a Required Minimum Distribution (RMD) from your pre-tax retirement accounts, such…

CARES Act: Enhanced Loans From Employer Retirement Plans Background: Previously, if you ever needed to request a loan from your 401(k) or 403(b) plan, you’d be restricted to the lesser of 50,000 or 50% of your vested account balance. Meaning if your vested balance was 90,000, you’d be limited to 45,000 (90k * 50%) as that is…

CARES Act: Coronavirus-Related Retirement Distributions   You can take up to $100,000 out of your employer retirement plan (401k, 457, etc) or IRAs without incurring the normal 10% withdrawal penalty. Background: Normally, when you take money out of your 401k or IRA before Age 59-½, you’d have to pay a 10% penalty in addition to income…

CARES Act: Recovery Rebates CH.R. 748 (CARES Act) Bill Provisions Over the past few days, we have read through the H.R. 748 (CARES Act) bill and there are some specific items we think you could benefit from, if your short term finances could use the help. Even longer-term there are some items that will affect you.…