At Manasquan Bank, we give you the power to really save with a number of exceptional wealth building tools to choose from. Grow your money safely, securely, and with local service every step of the way. We offer short to long-term options with plenty of flexibility as well as competitive rates.
**On June 23, 2020, the IRS issued Notice 2020-51, which postpones, to August 31, 2020, the due date for IRA owners and beneficiaries to roll over an amount that would have been a required minimum distribution (RMD) in 2020 but for the waiver provided by the CARES Act and the increase in RMD age to 72 provided by the SECURE Act. This includes the RMD for 2020, and, for those IRA owners who reached age 70½ in 2019 who have a required beginning date of April 1, 2020, the 2019 RMD that was paid between January 1, 2020 and April 1, 2020.
The RMD amount may be repaid to an IRA, even if the repayment is made more than 60 days after receiving the distribution, but no later than August 31, 2020. Also, an IRA distribution that was to be an RMD that is repaid is not subject to the one-rollover-per-year rule and nonspouse beneficiaries, who are ordinarily restricted from rolling over a death distribution, may roll over an amount that would have been an RMD for 2020.
*On Friday, March 27, 2020, President Trump signed the Coronavirus Aid, Relief and Economic Security (CARES) Act (the Act) into law. The Act’s primary purpose is to provide aid to businesses and individuals that may be affected by the coronavirus (COVID-19) pandemic. There are several provisions within the Act that affect IRAs.
An individual may take up to $100,000 as a coronavirus-related distribution, and that distribution would not be subject to the IRS 10% early distribution penalty. A coronavirus-related distribution is defined as any distribution made on or after January 1, 2020 and before December 31, 2020 by an individual who is diagnosed (or his or her spouse or dependent is diagnosed) with SARS-CoV-2 or COVID-19 using a CDC approved test, or an individual who experiences adverse financial consequences or other disadvantageous circumstances as determined by the Secretary of Treasury. The individual may elect to pay all the taxes on the distribution in the current tax year or include the distribution in income ratably over a three-year period. In addition, the individual could roll over the distributed amount within a three-year period.
The Act also temporarily waives required minimum distributions (RMDs) for the 2020 calendar year. This means individuals, including beneficiaries taking single life expectancy payout distributions, are not required to take an RMD for the 2020 calendar year. Also, individuals whose required beginning date is April 1, 2020 (i.e., IRA owners who reached age 70½ in 2019) but did not take a distribution prior to January 1, 2020 are also waived from taking the 2019 RMD. For beneficiaries that chose the five-year payout, the Act states that the 2020 calendar year will not count towards the five-year period thereby giving the beneficiary a six-year period to deplete the funds in the inherited IRA.
The Act, however, did not provide any guidance for individuals who may have already taken their RMD for the 2020 tax year and now wish to put the funds back in their IRA account. It is feasible that the IRA owner may be eligible to put the funds back into an IRA account as a rollover, providing the IRA owner rolls over the distributed RMD funds within 60-days of receiving the distribution, and the IRA owner has not completed a rollover within the past 365 days.
Special Certificate of Deposit (CD) Programs
Manasquan Bank gives you security and competitive rates with our IRA offerings. A Traditional IRA is a Federal Government-authorized savings plan designed to help you accumulate tax-deferred funds for your retirement. Roth IRA, contributions are non-deductible but all withdrawals, including earnings, are tax-free if the account has been open for five years and the account holder is at least age 59 ½. Click here to see today’s terms and rates.
We also offer the following special 18-Month IRA Certificates:
Manasquan Bank helps you finance education with our Coverdell Education Savings Account. While contributions to this account are not tax-deductible, you’ll enjoy tax-deferred earnings and tax-free distributions for qualified educational expenses for kindergarten through 12th grade, college, or trade school.
Manasquan helps you finance education with our Coverdell Education Savings Account. While contributions to this account are not tax-deductible, you’ll enjoy tax-deferred earnings and tax-free distributions for qualified educational expenses for kindergarten through 12th grade, college, or trade school.
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