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What qualifies as a “coronavirus-related distribution” from a retirement plan?

Posted by Admin Posted on June 23 2020

The CARES Act allows qualified people to take “coronavirus-related distributions” from retirement plans without paying tax. So how do you qualify? You can take up to $100,000 in coronavirus-related distributions made from an eligible retirement plan between Jan. 1 and Dec. 30, 2020. If you repay the distribution to your IRA or plan within 3 years, you can treat it and the later recontribution as a tax-free rollover. In Notice 2020-50, the IRS explains that a qualified person is one who is diagnosed (or whose spouse/dependent is diagnosed) with COVID-19. Alternatively, it is someone who experiences adverse financial consequences due to COVID-19. For more details: https://bit.ly/37STcwK