(Photo: Kelly Sikkema/Unsplash)
Here’s a question we received from Carol, one of our blog readers.
Great question, Carol! It’s one that many other people are undoubtedly asking in light of widespread market volatility:
Carol’s Question: “Since the market has dropped so much this year (and therefore the value of my IRA), will there be a suspension of RMDs? I’m being forced to take big distributions on a much smaller IRA!”
You may recall that Required Minimum Distributions (RMDs) were waived in 2020 due to the economic turmoil resulting from the COVID pandemic. (If you have a really good memory, you may remember that RMDs were also waived in 2009 following the financial crisis.) In 2020, IRA withdrawals were optional, not required. That allowed many IRA investors to save money by foregoing withdrawals and keeping their taxable income (and tax bills!) low.
So, what’s up for 2022? Are there any plans to waive Required Minimum Distributions for 2022?
The short answer is “not yet.” IRA experts say that they are not aware of any waiver in the works yet, but it is “always possible” that Congress will pick up on the waiver suggestion. Stay tuned!
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