Navigating The Required Minimum Distribution Rules For 2020 And Thereafter - September 2020

Two recent tax changes, one added as part of the SECURE Act passed in late 2019 and another included in the recently enacted CARES Act, will affect required minimum required distributions ("RMDs") in tax-qualified retirement and Section 403(b) plans of for-profit and tax-exempt employers in 2020 and thereafter. In this Benefits Brief, we will provide a general overview of these changes, how they will affect administration for these plans for 2020 and following years, and provide suggested action items for plan sponsors and plan administrators.¹

Required Minimum Distributions – Pre-SECURE Act

The required minimum distribution rules are designed to assure that amounts accumulated in retirement plans are used for the support of the participant and his/her dependents in retirement rather than a tax-deferred vehicle to transfer wealth to a younger generation.