Retirement Planning and Investing in the COVID Era.

Key Takeaways

• If you already took your 2020 RMD before the CARES Act suspended it, you can roll it back within 60 days (with possible deadline extensions) — consult your financial advisor about timing options
• Consider a Roth conversion now while account balances are down and tax rates are historically low; you can spread the converted income over 3 years instead of paying taxes upfront
• Rebalance your portfolio to restore your target asset allocation and ensure you have 3-5 years of liquid cash reserves, since market downturns can skew portfolios significantly
• Evaluate your risk capacity by asking if you can maintain your living standard if markets stay poor for 30-40 years; if not, consider de-risking even at current low prices
• If eligible, you can withdraw up to $100,000 as a coronavirus-related distribution without the 10% early withdrawal penalty (if under 59.5) and have 3 years to repay it or spread the income across 3 tax years