April 2020
CARES act and your IRA
Notable provisions of the CARES Act that will affect IRAs include:
- Waiver of Required Minimum Distributions (RMDs) for calendar 2020.
- For those who qualify, the CARES Act allows for a coronavirus-related distribution in 2020 from IRAs of up to $100,000 without it being subject to the 10% early withdrawal penalty if the IRA owner is under 59 ½. The income tax on the coronavirus-related distribution may be spread evenly over 3 years. Or, the distribution may be repaid to an eligible retirement plan within a 3-year period.