ASHEVILLE, NC / ACCESSWIRE / August 8, 2020 / What impact will the CARES Act have on Self-Directed IRA owners? That's the question posed at a recent post at American IRA. On the American IRA blog, the Self-Directed IRA administration firm dealt with the CARES Act-also known as the Coronavirus Aid, Relief, and Economic Security Act-and pointed out the legislation in the bill that could be especially relevant for Self-Directed IRA investors.
The post highlighted four major provisions in the legislation: the establishment and provision for bridge loans, additional funds for grants, economic stimulus for individuals and families, as well as tax relief like delaying the due dates on taxes due in 2020. However, most relevant to Self-Directed IRA owners are the changes concerning Required Minimum Distributions (RMDs) and retirement distributions.
RMDs are those distributions that the government requires retirees to take-whether or not they're still working. As the post notes: "But as Congress acknowledges that the stock market may have dropped during this period of economic turmoil, the legislation suspends RMDs for 2020. This only applies to those who have reached the age where RMDs kick in. So for those retirees who have planned on RMDs kicking in by a certain age, this age has essentially been pushed back if you turn that age during this pandemic."
The post also details the changes to retirement distributions, allowing individuals to withdraw up to $100,000 from accounts like a 401(k). This would include Self-Directed IRA plans and Self-Directed 401(k) plans, as these accounts are not distinct, but rather a different way of managing the same accounts for which the laws apply.
"When Congress passes a bill this large, it can take the public a while to digest everything that's in it," said Jim Hitt, CEO of American IRA. "This post is aimed at disseminating some of the most relevant information for Self-Directed IRA owners."
American IRA, LLC was established in 2004 by Jim Hitt, CEO in Asheville, NC.
The mission of American IRA is to provide the highest level of customer service in the self-directed retirement industry. Jim Hitt and his team have grown the company to over $400 million in assets under administration by educating the public that their Self-Directed IRA account can invest in a variety of assets such as real estate, private lending, limited liability companies, precious metals and much more.
As a Self-Directed IRA administrator, they are a neutral third party. They do not make any recommendations to any person or entity associated with investments of any type (including financial representatives, investment promoters or companies, or employees, agents or representatives associated with these firms). They are not responsible for and are not bound by any statements, representations, warranties or agreements made by any such person or entity and do not provide any recommendation on the quality profitability or reputability of any investment, individual or company. The term "they" refers to American IRA, located in Asheville and Charlotte, NC and Atlanta, GA.
SOURCE: American IRA, LLC