How will your estate and retirement planning be affected by the cares act. The “CORONAVIRUS aid, relief, and economic security act, offers some opportunities you may not know about, modifications that may help you through these challenging times. First- required minimum distributions or RMDS from your retirement accounts are waived for 2020. If you have taken a distribution in the last 60 days you may be able to use the 60 day rollover rule for traditional IRAS in order to avoid the tax consequences. Next- early withdrawal penalties are waived for distributions related to IRAS and 401ks.
If you have a financial need, the cares act allows for a distribution of up to $100,000 from a retirement account without penalty. This applies to individuals under 59 1/2 years old. Meanwhile, the tax liability related to these distributions can be extended over 3 years. Another benefit of the cares act: unlimited deductions on cash contributions to charity. Also suspends the 60 percent adjusted gross income limitation for cash contributions to qualified charities, making those contributions fully deductible in 2020. It is a unique time for estate and retirement planning strategies. So if you need help with these or any related topics, call doane and doane or visit doane and doane dot com.