The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020. This $2 trillion economic relief package provides a financial backstop to individuals and businesses that are adversely affected by the COVID-19 pandemic.

There is a section of the law that suspends minimum required distributions for the 2020 calendar year for certain plans. This exception applies to IRAs as well as to certain plans described under Sections 403 and 457 of the Internal Revenue Code, and only applies if an individual’s required beginning date occurs in 2020 and that individual has not received any of the required distribution prior to January 1, 2020.

For purposes of determining the 5-year period within which a beneficiary’s entire interest must be distributed in accordance with Internal Revenue Code Section 401(a)(9), the 2020 calendar year is not counted.