RMD’s from IRA’s with High Year-end Balances!
I’m 80+ years old and rely a lot on my savings (most in an IRA) for income. RMD’s from IRA’s are based on age and the value of the IRA at the end of the year. My IRA was close to an all time high on 12/31/19, but since has lost about 50% of it’s value due to the COVID 19. Now I would normally withdraw a lot less money from my IRA, and thus pay less taxes and not drain my IRA. Is the government going to do anything about this, I’m sure there are many others in the same position.
Terry Says
Good Question — and it will be the focus of a column in a week or two. Last time this happened — 2008 — they made an adjustment so withdrawals did not have to come from those high-year-end balances. I’m sure the govt will do something similar this year –once they have time to focus on this issue. And I intend to help them “focus”!! Meanwhile, try not to take withdrawals till we see what happens by year-end — unless you need the money, of course!
