Keep It Simple When Notifying Clients about the RMD Waiver
EDITOR’S NOTE: Following the release of IRS Notice 2020-51 in June 2020, Ascensus’ IRA 2020 Required Minimum Distribution Waiver has been updated to include a summary of potential options for IRA owners and beneficiaries to return any RMD payments they received in 2020 before Notice 2020-51 was issued.
Wondering how best to let your IRA owners and beneficiaries know that they don’t have to take a required minimum distribution (RMD) for 2020, thanks to the Coronavirus Aid, Relief, and Economic Security (CARES) Act? Normally, those who are required to take an RMD for the year must do so by December 31. But because of the coronavirus (COVID-19) pandemic and to help savers retain more in their retirement accounts, the CARES Act has removed that requirement for the year 2020. The waiver applies to both IRA owners and beneficiaries who are required to take an IRA distribution for 2020. This includes IRA owners who turned 70½ in 2019 but did not take their first RMD before January 1, 2020, because they had until April 1, 2020, to take that first RMD.
Getting the word out to your clients on such short notice (the CARES Act was enacted at the end of March) and in a way that’s efficient and cost-effective may seem daunting, perhaps another obligation that your organization doesn’t have time for right now. Nonetheless, you’ll want to ensure that your IRA clients know about the waiver, especially those on scheduled payments who may already be receiving their 2020 RMDs, and that you give them the opportunity to either go along with the waiver or take their RMDs anyway for 2020.
Ascensus can help you do this. Ascensus' IRA 2020 Required Minimum Distribution Waiver is a simple, reliable way for you to notify your IRA owners and beneficiaries that 2020 RMDs are waived. When your financial organization purchases a copyright license for the Ascensus form, you’ll receive a PDF version to print and mail to all of your account owners and beneficiaries. For Fully- and Self-Administered Program clients, the IRA 2020 Required Minimum Distribution Waiver is available in the Blank Forms section of IRAdirect®.
Ascensus' IRA 2020 Required Minimum Distribution Waiver is an efficient, compliant way to give your clients the information they need about the 2020 RMD waiver. Contact sales.support@ascensus.com for more information about this service.
