Updated on August 14, 2020
The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act"), enacted on March 27, allows individuals to waive 2020 MRDs. This temporary waiver addresses potential concerns about taking money out of investments during the current volatile market and economic slowdown.
WHAT YOU NEED TO KNOW
- You don't need to take action if you want to waive your 2020 MRD and have not scheduled a distribution.
- Fidelity will not automatically process MRDs from your UC 403(b), 457(b) or DC Plan in 2020, unless you have scheduled a distribution.
- As a reminder, the SECURE Act passed in late 2019 raised the MRD age to 72 years old for anyone born on or after July 1, 1949.
WHICH MRDs ARE COVERED?
The temporary waiver applies to your MRD if you:
- Were eligible for your first MRD in 2019 and your first required payment was taken between January 1 and April 1, 2020.
- Are eligible for your first MRD in 2020 and your first payment was required to be paid between January 1, 2020 and April 4, 2021.
- Have already started taking MRDs prior to 2020 and you had payments that were required to be taken between January 1, 2020, and December 31, 2020.
- Are the beneficiary on an account and you have either Beneficiary Lifetime Annual Distributions or 5th Year Force Out MRDs that were required to be paid between January 1, 2020, and December 31, 2020.
Note: If you have already taken an MRD in 2020, you may not return the distribution; however, under certain provisions, you may be able to roll over the MRD payments received between January 1, 2020 through May 15, 2020 into the UC Retirement Savings Program, another eligible retirement plan or an IRA. The IRS has not granted an extension on MRD payments received prior to January 1, 2020. You should consult with your tax advisor to determine if you are able to self-certify to extend the 60-day rollover window.1
WHAT YOU NEED TO DO
No action is required if you want to waive your 2020 MRD and have not scheduled a distribution.
To change or cancel a pre-scheduled MRD or take your 2020 MRD, call a UC-dedicated Retirement Planner at 1-800-558-9182.
WHERE TO GO FOR MORE INFORMATION
If you have questions about the CARES Act and how it affects your MRD, call a UC-dedicated Retirement Planner at 1-800-558-9182.
Note that the IRS may provide additional guidance on this provision. To learn more, visit irs.gov and search “required minimum distributions.”