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2022 RMD Waiver?


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RMD's deliver revenue to the "fisc."   I do not think they will consider a waiver because it would hurt participant savings.  My thoughts!

Patricia Neal Jensen, JD

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|Future Plan, an Ascensus Company

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I doubt it.  The market being down hasn't ever, to my recollection, a valid reason to suspend RMDs.  We had pandemic (where market was down, but we also have massive unemployment which was a double whammy.  Previously, severe recession might have been used to justify a suspension.  I have an IIRA - and took my RMD in January (as I always do.  No pain for me....

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41 minutes ago, MoJo said:

I doubt it.  The market being down hasn't ever, to my recollection, a valid reason to suspend RMDs.  We had pandemic (where market was down, but we also have massive unemployment which was a double whammy.  Previously, severe recession might have been used to justify a suspension.  I have an IIRA - and took my RMD in January (as I always do.  No pain for me....

I'm pretty sure this was cited by congress both times they suspended RMDs. Now the 2nd time they did it, the market rebounded and then some in the same year but it was clearly the justification for it in the CARES act.

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11 minutes ago, Lou S. said:

I'm pretty sure this was cited by congress both times they suspended RMDs. Now the 2nd time they did it, the market rebounded and then some in the same year but it was clearly the justification for it in the CARES act.

My point is it wasn't just the market being down.  That's what caused the pain - but keying RMDs to "regular" market volatility is anathema to the concept of an RMD.  When the market is exceptionally volatile due to some other factors (a pandemic, a severe recession, etc.) then Congress has sought to provide relief.

For now, we aren't in a recession (yet), the pandemic is mostly behind us (and not the root cause of the market turmoil), and what's the point (from a legislative policy perspective) - and winning reelection is really a "chicksh!t" reason and not really valid policy?

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You may be right but I think the largest first half of the year market drop since 1932 is bit more than "regular market volatility".

That said, I don't see suspension of RMDs on the horizon for 2022 due to revenue concerns brought up earlier but who knows, maybe it gets slipped into Secure 2.0 and passes before the midterms. I just wouldn't be banking on it.

 

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