Many retirees may have to
sell stocks at worst time
Retirees will be hurt by COVID-19 and IRA regulations. An IRA Required Minimum Distribution (RMD) is established based on the value of the IRA at the end of each calendar year.
At the end of 2019, the stock market was near record highs. The turmoil caused by COVID-19 has resulted in significant reductions in many stock prices. If the current IRA RMD regulations remain in effect, many retirees may be required to sell stocks at the worst time. Forced stock sales into a troubled market is bad for both the retiree and the financial market.
Appropriate U.S. House committees and governmental agencies should explore how this adverse financial effect of the COVID-19 outbreak may be reduced.
Simply resetting the RMD basis date for 2020 to April 15th (or July 4th, or …) would be of benefit to both the retirees of this country and the stability of our financial markets.
Randall Mundt
Pleasanton
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