Saving money for retirement in a tax-deferred account has many benefits – but you can only defer taxes so long before they must be paid, which is why U.S. tax law requires a Required Minimum Distribution (RMD). An RMD is the amount of money that must be withdrawn annually from a tax deferred account (including traditional IRAs, SEP IRAs, and Simple IRAs) once the owner reaches a certain age. RMDs are taxed as ordinary income.

The COVID-19 pandemic has affected numerous aspects of our daily lives. We are isolated from friends and family, forced to change long-awaited plans and unsure of what the economic future holds. Things that felt important six weeks ago may suddenly feel unimportant or even be forgotten entirely, but it is critical to maintain a long-term perspective when it comes to investing and planning, even in the face of short-term disruption. During these stressful and uncharted times, it is important to stay focused on preserving both your physical and mental well-being, along with your financial well-being.