The CARES Act & Special Rules for Use of Retirement Funds
March 27, 2020 | Authored by Dopkins Tax Advisory Group
March 27, 2020 -Tax relief for individuals through the Coronavirus Aid, Relief, and Economic Security (CARES) Act is here. This includes a modification to the tax treatment of certain retirement fund withdrawals.
For retirement plan distributions, an exception would be provided to the 10% early withdrawal penalty for distributions up to $100,000 for coronavirus-affected individuals. Income from such distributions would be recognized over a three-year period. Taxpayers may recontribute funds to their eligible retirement plan in the first year or within three years without regard to the year’s contribution cap.
Another modification for coronavirus-affected individuals includes the increase in loan limits from retirement plans from $50,000 to $100,000. Lastly, the repayment deadlines for current loans that are due in 2020 are being delayed.
About the Author
Dopkins Tax Advisory Group
Our tax professionals include specialists who are proactive, strategic thinkers who work to maximize your cash flow. In addition to cash flow considerations, we also believe that tax planning is most effective when it is integrated with, and fully supports, your business plan and personal goals. Our approach to tax planning will help you better understand the tax implications of any proposed course of action, and together we can make the right decisions for your business. Contact us via email link below for more information. for more information contact your Dopkins Client Service Coordinator or Gregory Urban at gurban@dopkins.com
