Seniors over age 72 are required to withdraw funds from traditional IRAs based on account values and life expectancy. These Required Minimum Distributions (RMDs) are based on the account value at the end of the previous year, with the recent temporary downturn in the stock market this will force many seniors to sell more shares to cover the RMD. This decreases the future value of their IRAs and hurts their long-term savings.
During the great recession Congress temporarily suspended RMDs and should do so again for 2020 and 2021. Any senior needing to pull from their savings will still be able to do so, but not be required to. Tell your elected officials today to suspend these RMDs!