California conformity with IRAs for 2020 November 2020 Tax News
We have received several questions about California conformity with federal law regarding individual retirement accounts (IRAs). The Internal Revenue Service (IRS) is not requiring a required minimum distribution from your IRA for 2020.
Does California conform?
Yes. For calendar year 2020, California includes a temporary waiver of the required minimum distribution requirement.
The federal CARES Act waives required minimum distributions (RMDs) during 2020 for IRAs.
In our May 2020 Tax News article, California’s conformity with the Federal CARES Act, we shared with you that California generally conforms to pension-related items including the minimum distribution rule changes. This occurs because California law (R&TC Section 17501) provides for conformity (adoption) of any changes in IRC 401, unless our State Legislature were to pass a change in law (to provide otherwise). As this did not occur, California law adopted the changes to IRC 401 made by the CARES Act with no modification.