RMD Waiver + Stimulus Check = Tax Credit

For retirees, the two most important parts of the recent CARES Act waived required minimum distributions (RMDs) for 2020 and authorized stimulus checks for most American adults. The RMD waiver protects seniors who would otherwise have to dip into slumping traditional IRA and 401(k) accounts and withdraw an amount based on pre-coronavirus values. Now, retirees who can get by without their 2020 distribution can leave that money in their retirement accounts an extra year and, hopefully, let those accounts regain lost value. The stimulus checks put money directly in retirees' pockets - up to $1,200 per person (assuming there are no dependent children). Struggling seniors can use this cash infusion to pay rent, buy food, cover medical expenses, or prop up their finances in any way they see fit.

Each of these benefits is separately impactful in its own way - either by providing immediate financial relief or stretching out retirement savings. However, when combined,