Important Information for US Seniors with Retirement Accounts

Iran’s Military Satellite Launch, Pentagon Response, Trump Regime Threats
April 23, 2020
Iran to Retaliate Against US Aggression if Launched
April 24, 2020

Important Information for US Seniors with Retirement Accounts

by Stephen Lendman (stephenlendman.orgHome – Stephen Lendman)

US seniors with retirement accounts must make Required Minimum Distributions (RMDs) quarterly and incur a federal tax obligation.

This obligation was suspended during the 2008 financial crisis, at the time well-publicized.

Under CARES Act legislation, passed by Congress and signed into law by Trump on March 27, RMDs were suspended for 2020, resuming in 2021.

Unlike in 2008, this benefit largely passed under the radar. I didn’t know about it when writing about the CARES Act.

I do now and wanted to share the information with others able to benefit, reducing or perhaps eliminating their 2020 federal tax obligation.

The law applies to IRA and other retirement account holders who initiated them on their own, along with individuals who inherited one or have a beneficiary IRA.

It does not apply to others with Roth IRAs unless they were inherited. Vanguard explains them as follows:

“A Roth IRA is an individual retirement account that offers tax-free growth and tax-free withdrawals in retirement.” 

“Roth IRA rules dictate that as long as you’ve owned your account for 5 years and you’re age 59½ or older, you can withdraw your money when you want to and you won’t owe any federal taxes.”

There are no RMDs for holders, including for individuals with beneficiaries IRAs, in both cases able to make withdrawals tax-free.

Conversion from a traditional to a Roth IRA incurs a federal tax obligation on the amount involved.

The difference between both IRAs is when holders must pay their federal tax obligation and how much in a single year.

As the saying goes, you can pay now or later, a personal choice.

Individuals like myself who made a Q I RMD can reverse it within 60 days as I did when learned of the benefit.

CARES Act legislation gives US seniors a tax break.

The above information shouldn’t be misconstrued as tax advice.

I’m simply passing on important information I learned. 

US individuals making RMDs in normal times must decide if they wish to defer federal taxes this year or not, based on what’s best for them.

According to, the IRS may announce new guidelines to let individuals who made a Q I 2020 RMD outside the 60-day window reverse it at their discretion.

CPA Hayden Adams expects new IRS guidance on this issue in a few weeks or sooner.

For individuals affected by COVID-19, themselves or family members, no 60-day limit applies


Individuals who were laid off, furloughed, or otherwise experienced “adverse financial consequences” from the novel coronavirus are also covered.

New IRS guidelines will provide more clarity on this issue.

This year’s federal income tax filing deadline was delayed until July 15.

The RMD 2020 waiver applies for  401(k), 403(b), and governmental 457(b) plans, as well as SEP IRAs, SIMPLE IRAs, and traditional IRAs.

The 10% early withdrawal penalty was waved in 2020 for COVID-19 affected participants in workplace IRAs for amounts up to $100,000.

The vast majority of federal benefits went and continue going to well-connected monied interests, notably Wall Street banks.

They’re able to print their own money in unlimited amounts because they own and control the Federal Reserve that’s not federal.

The White House, Congress, and federal courts, notably the Supremes, serve privileged interests exclusively at the expense of public health and welfare.

COVID-19 will pass. When economic crisis conditions end and growth resumes, ordinary Americans will likely be much worse off than when what’s now going on began.

The future for them looks grim. They’ll suffer so privileged interests can benefit at their expense. That’s how things are playing out.

VISIT MY WEBSITE: (Home – Stephen Lendman). Contact at

My two Wall Street books are timely reading:

“How Wall Street Fleeces America: Privatized Banking, Government Collusion, and Class War”

HOW WALL STREET FLEECES AMERICA Privatized Banking, Government Collusion and Class War


“Banker Occupation: Waging Financial War on Humanity”

BANKER OCCUPATION: Waging Financial War on Humanity

Stephen Lendman
Stephen Lendman
Stephen Lendman was born in 1934 in Boston, MA. In 1956, he received a BA from Harvard University. Two years of US Army service followed, then an MBA from the Wharton School at the University of Pennsylvania in 1960. After working seven years as a marketing research analyst, he joined the Lendman Group family business in 1967. He remained there until retiring at year end 1999. Writing on major world and national issues began in summer 2005. In early 2007, radio hosting followed. Lendman now hosts the Progressive Radio News Hour on the Progressive Radio Network three times weekly. Distinguished guests are featured. Listen live or archived. Major world and national issues are discussed. Lendman is a 2008 Project Censored winner and 2011 Mexican Journalists Club international journalism award recipient.