Terry’s Columns Money News Update 6/24/20

Money News Update 6/24/20

By Terry Savage on June 24, 2020

IRS says RMDs Can Be Returned
If you took a Required Minimum Distribution at any time during 2020 – or even regular distributions on a monthly basis, you may return them to your IRA without penalty if you act by August 31st.

Of course, the IRS announced in April that NO RMDs would be required in 2020, but many people had already taken money out of their retirement accounts. Then the IRS said money taken out after Feb 1st could be returned. Now, they have come to their senses and said ANY RMDs taken in 2020 can be put back into the account. There is no 60 day rollover restriction and no limitation of only one rollover.

If you had taxes withheld, you can’t get them back. But they will be a credit on next year’s return. And you might want to adjust/reduce your withholdings on any other income in 2020, knowing you have that credit coming next year.

A Second Stimulus Check this Year?
Pardon my cynicism, but of course there will be a second stimulus program: It’s an election year!
Now the debate in Washington is over what is the best way for the politicians to buy your vote!

Odds are there will be a second direct stimulus check—only this time to a broader range of people including teens over 17 and perhaps elderly dependents. That’s what the House passed in the Heroes Act on May 15th. Senate Republicans let by Mitch McConnell said that was a non-starter – until yesterday the President promised a second, “very generous” stimulus check would be sent under his signature. Others have suggested a back-to-work bonus to encourage people earning more on unemployment to head back to their jobs.

Of course, that is a moot point to many unemployed in Illinois who have been waiting since March when the Cares Act was passed to get ANY unemployment benefits! Are you listening, Gov. Pritzker?

Note: Washington better get to work on the plan – because the $600 in additional Federal weekly unemployment benefits ends July 31st. That would hit many families hard, especially those who work in restaurants, travel, and entertainment venues that are not re-opening.

But wait. Congress leaves for its summer recess on July 3rd, not returning until Monday, July 20th. (Ever notice that only grade-schoolers and Congress get “recess”?) Anyway, when they return they’ll have only 10 days to agree on a plan to keep the economy from falling off a cliff just before the political conventions.
This is getting interesting! And that’s The Savage Truth.



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