With the passing of the Coronavirus Aid, Relief, and Economic Security (CARES) Act by the Federal Government, effective immediately, all Required Minimum Distributions (RMD’s) are no longer required for the year of 2020.

What is an RMD?

An RMD is a distribution from a retirement account, such as an IRA or 401(k), the Federal government forces individuals to take once they reach 72 years of age. (This was changed from 70 1/2 before the CARE Act)

Why have RMD’s been suspended?

In a growth model, this allows for individuals to stop selling their assets at a loss and allows their retirement holdings a chance to rebound.

As you know, with an income model, we do not have to worry about selling assets for income. We take income from dividends. This gives us the ability to take your RMD dollars and buy additional shares at a discounted rate, continuing to grow your income even faster!

How do we suspend our RMD’s?

In order to do this as efficiently as possible, we would like everyone to use the virtual form below.

This is a very simple, easy to navigate form. All we need from you is:

  • Your Full Name
  • Click Yes/No to suspend RMD’s from your account(s)
  • Hit the Submit button on the form

It is absolutely critical that everyone who has a TD Ameritrade account takes the time to do this, not just the head of household. TD Ameritrade has informed us they will be setting systematic RMD schedules to zero. What that means to you is that your RMD’s will be automatically suspended May 1st unless  we ask TD to continue them for each one of you. If you still want your distributions to continue, you must notify us by filling out the form below. Beyond this, we want to be as confident as possible that everyone is properly notified of the change.

We will be sending out additional information as we receive updates and providing additional instructions as necessary. We want everyone to get the most out of the CARES Act so we can better prepare you for retirement.

Please click here to fill out our form: https://forms.gle/MFzSdcMKaE9zo8A76

If you are not taking income from your IRA’s, no action is required on your part.

Have a great weekend everyone!


Melia Advisory Group