In this message,  we will focus on the FACTS of the SECURE ACT of 2020 for those already in Retirement and for the IRA holders below age 59 1/2. WOW, this helps.

So here we go…get a pen and pad and write this down, it can save you thousands of delayed taxes this year. If you are under age 59 1/2, you may take up to $100,000 from your IRA and pay it back over 3 years? Certain caveats apply. 

(DETAILS: Always check with a CPA or Tax Specialist, but this is Important to KNOW!)

RETIRED and have to take your Required Minimum Distribution this year? NOPE!

The CARES Act

• 2020 required minimum distributions (RMDs) waived
  On March 27, 2020, President Trump signed into law the massive Coronavirus Aid, Relief, and Economic Security (CARES) Act. This legislation includes a waiver of required minimum distributions (RMDs) for 2020; it applies to company savings plans and IRAs, including both traditional and Roth inherited IRAs.An RMD waiver is a huge help for clients who would have had to take a 2020 RMD based on much higher account values on December 31, 2019. Now, clients can sit out a year and avoid the tax bill on their 2020 RMDs, if they wish. The CARES Act impacts 2019 RMDs having a required beginning date of April 1, 2020. Any 2019 RMD amount remaining and not withdrawn by January 1, 2020, is waived.

Did you lose your Job and have an IRA? and are under age 59 1/2?

New 10% early distribution penalty exceptions
Another provision of the CARES Act waives the 10% early distribution penalty on up to $100,000 of 2020 distributions from IRAs and plans for affected individuals. The tax would be due but could be spread evenly over 3 years, and the funds could be repaid during those 3 years.
The new law also affects company plan loans taken by affected individuals. First, the law increases the maximum amount of plan loans to the lesser of $100,000 (reduced by other outstanding loans) or 100% of the account balance. (The usual limit is the lesser of $50,000, reduced by other outstanding loans, or 50% of the account balance.) This rule applies to loans taken within 180 days from the bill’s date of enactment.