If you’d normally be planning a required minimum distribution (RMD) from your IRA this time of year, you can push that thought forward to 2021. The CARES act eliminated the need to take an RMD for 2020. This applies to both traditional IRAs and inherited IRAs.
We would advise clients to skip RMDs this year if at all possible. The biggest benefit in holding stock in an IRA is tax-free appreciation year after year. If you make a withdrawal, you lose that benefit of tax-free compounding.
There’s one case where it may still be wise to take a small RMD. If you normally depend on taxes withheld from your distribution to cover tax on other forms of income (Social Security, for example), we would suggest taking a distribution sufficient to meet your needs and directing 100% of the amount to withholding. Unlike quarterly payments, tax withholding is considered withheld evenly throughout the entire year. This can help you make up for missed or too-small quarterly payments.