New Retirement Rules

Brian F. Chrest, CPA Brian F. Chrest, CPA

Brian F. Chrest, CPA

Strategic Planner at Chrest CPA Tax Planning | Family Owned Business Tax Planner | Servant Leader | Provider of Peace | Business Owner Coach | Lover of Baltimore

发布日期: 2020年7月15日
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New IRS guidance expands the possibilities for what is an adverse COVID-19 impact on you for purposes of taking up to $100,000 out of your retirement accounts and repaying it without penalties.

 First, let’s look at the rules as they existed before this new IRS guidance. The CARES Act created the first set of favorable rules, and those rules are still in play.

 What the CARES Act Says

A coronavirus-related distribution from your qualified retirement plan, Section 403(b) plan, or IRA gets two tax benefits: 

  1. If you withdraw and keep the money, you pay no 10 percent early withdrawal penalty and you can spread the income equally over tax years 2020, 2021, and 2022. You also can elect to include it all in tax year 2020, if you want.

You can repay the money within three years of the distribution date and pay no tax or penalty on the amount.

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