llAct Act Act upAre you familiar with the new provisions about retirement accounts from the SECURE Act and coronavirus relief bill? These changes may affect how you make retirement decisions in the coming weeks and months.
These new rules don’t apply to everyone and it’s important to reach out to discuss your situation before making big changes. But if you need a quick recap of a few key details, please review the following:
401(k) Distributions
- Per the Coronavirus Aid, Relief and Economic Security (CARES) Act, qualified participants younger than 59 1/2 won’t pay the usual 10% penalty on up to $100,000 in early distributions from their 401(k) in 2020
- You’ll still owe income tax on your distributions but you can spread the payments over the next three years.
- If you take an early distribution due to the coronavirus and redeposit all or part of the total amount within three years the repayment amount each year won’t count toward your annual contribution limit for that year.
Required Minimum Distributions From Retirement Accounts
- The coronavirus relief bill waves RMDs in 2020.
- It’s also important to note that the SECURE Act, which was signed into law in late 2019, and its update SECURE Act 2.0 passed in 2022, include a number of provisions related to retirement. Notably, these laws push back the age for taking required minimum distributions from 70 1/2 to 72.
Do you have questions about the tax implications on retirement or need assistance? Please, reach out if you like to go over anything in more detail.
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