Some information pertaining to the Coronavirus Aid, Relief and Economic Security (CARES) Act that I found in an article by Bob Carlson from Forbes.
- Required Minimum Distributions (RMDs) are suspended for 2020 (this includes inherited IRAs)
- The 10% penalty for taking early distributions from qualified retirement plans including IRAs and 401ks is waived
- Waiver applies to distributions taken between 01/01/2020 and 12/31/2020
- Up to $100,000.00 of distributions can avoid penalty
- The mandatory 20% income tax withholdings for rollover distributions is suspended during this period
- Income taxes on a cornoavirus- related distribution can be paid over a three-year period
- The individual has up to three years to recontribute to a plan or IRA
- Retirement Plan Loan rules (401k) also are modified
- Loan maximum is increased
- Due date for repayment is delayed by one year.
To qualify for these changes the loan or distribution must be coronavirus-related and should therefore be discussed with your Financial Advisor and Tax Professional to determine how these changes apply to your situation.
You may also read the article in its entirety at the link below.