RMD (Required Minimum Distribution) Changes
Bob Powell, CFP interviews Jae Oh, Author of Maximize Your Medicare about Financial Planning Opportunities for Medicare and The Cares Act.
Key Takeaways
- If you haven't taken your 2020 RMD yet, you can skip it entirely; if you already took it within the past 60 days, you can return the full distribution to your IRA (though not withheld taxes) to reduce your 2020 taxable income
- Lowering your 2020 taxable income by skipping RMDs helps you avoid IRMAA surcharges on Medicare premiums, which apply to those with modified adjusted gross income over $87,000 and increase with inflation
- The financial benefit of this strategy won't materialize until 2022 when you file taxes and pay Medicare premiums, so you should anticipate potential savings rather than seeing immediate results
- This opportunity only applies if you don't need the RMD funds for living expenses—prioritize only skipping distributions if you can cover your monthly bills without that money
RMD (Required Minimum Distribution) Changes: Bob Powell, CFP interviews Jae Oh, Author of Maximize Your Medicare about Financial Planning Opportunities for Medicare and The Cares Act. To see more videos on FinStream TV featuring Jae Oh, please click this link: https://www.finstream.tv/featured/jae-oh/