Now more than ever, businesses are in need of guidance on audit and tax matters. Current world events have amplified the need to filter through new rules, regulations, and information that have come out of the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Families First Coronavirus Response Act (FFCRA).
These acts include rules that affect qualified retirement plans. We outline some important points below.
Some basic takeaways from the CARES Act and the FFCRA:
- Qualified individuals can withdrawal up to $100,000 without having to pay a fee if they are under age 59.5.
- For all of 2020, required minimum distributions are waived from qualified retirement plans.
These changes may be affected in different ways, depending on the nature of the retirement plan and the recordkeeper or administrator. Those responsible for the plan should seek to understand how these changes will be implemented by reaching out to the various parties associated with the plan (e.g. brokers, advisors, CPAs, administrators, recordkeepers, etc.).
Good to know
The Internal Revenue Service’s Notice 2020-23 automatically extends deadlines that usually fall on or after April 1 through July 14 to July 15, 2020.