top of page

Tax Blog

Tax Reminder: COVID-19 Inspired Legislation and IRA Distributions.

As a result of the Coronavirus Pandemic, Congress passed a number of laws to provide the economy and individuals with as much aid and flexibility as possible. In terms of IRAs, the CARES Act made it much easier to access saving without negative tax impacts.

The Act states that distributions made from Jan. 1, 2020, through Dec. 30, 2020, from IRAs or workplace retirement plans to qualified individuals may be treated as coronavirus-related distributions. These distributions are not subject to the 10% additional tax on early distributions (including the 25% additional tax on certain SIMPLE IRA distributions).

Taxes on coronavirus-related distributions are includible in taxable income:

  • Over a three-year period, one-third each year, or

  • If elected, in the year you take the distribution.

Coronavirus-related distributions may be repaid to an IRA or workplace retirement plan within three years.

Individuals who received required minimum distribution payments from their IRS in 2020 had the option to return the money to their account or other qualified plans in order to avoid taxation. Any distribution that was not rolled over or repaid may be eligible for treatment as a coronavirus-related distribution. Thus, allowing for three-years to repay the amount. A withdrawal from an inherited IRA to a qualified individual may also be a coronavirus-related distribution. Income from the withdrawal may be spread over three years for income inclusion; however, the withdrawal may not be repaid to the inherited IRA. The professionals at The Center for Financial Legal and Tax Planning are more than knowledgeable with regards to legislation and IRA distributions, please call us at (618) 997-3436.




1 Comment


JNFT WGFW
JNFT WGFW
4 days ago

KSD Miner KSD Miner

KSD Miner KSD Miner

BCH Miner BCH Miner

BCH Miner BCH Miner

EPS Machine EPS Cutting Machine_abcdefg;

EPS Machine Eps Raw Material;

EPS Machine EPS Recycling System;

EPS Machine EPS Mould;

EPS Machine EPS Block Molding Machine;

EPP Machine EPP Shape Moulding Machine;

EPTU Machine ETPU Moulding Machine

EPS Machine Aging Silo for EPS Machine;

EPTU Machine ETPU Moulding Machine

EPS Machine EPS and EPP Heating Room;

EPS Machine EPS and EPP Heating Room;

Like

Sign Up

FOR OUR MONTHLY NEWSLETTER

Success! Message received.

RECENT POSTS
ARCHIVE
SEARCH BY TAG
FOLLOW US
  • Facebook Basic Square
  • Instagram
  • LinkedIn
  • Twitter
  • YouTube Social  Icon
bottom of page