Penalties waived for certain ditributions from IRA's

Updated: Dec 29, 2020

Distributions of up to 100k can be taken from retirement plans (IRA’s 401k, etc.), for financial difficulties related to having someone in the family sick, or reduced/lost work hours due to COVID-19, without paying the 10% early withdrawal penalty.

The income can be picked up in one year or elected to be divided over three years.

Amounts recontributed within 3 years, will be treated as a rollover, an amended return can be filled to get back tax paid.

#covid19relief # 401k #retirement

Recent Posts

See All

Employee Retention Credit Alert!

As you may know, there have been three major stimulus bills, included and subsequently enhanced in these bills, is the Employee Retention Credit. The Employee Retention Credit is now capped at 5K per

New Stimulus Package

On December 27th, Congress passed a $900 billion coronavirus aid package, included in the Consolidated Appropriations Act 2021. The bill is very detailed. We are keeping our eyes open as more informat

Payroll tax deferrals under the new executive order and under the Cares Act

What’s the difference and should you utilize it? Under the Cares Act, an employer is allowed to defer payment of the employer portion of social security tax, for the amounts accrued 3/27/2020-12/31/20

Post: Blog2_Post