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In an effort to keep our clients informed, please note the following 2020 Coronavirus Aid, Relief and Economic Security (CARES) Act retirement highlights for individuals:

Deadlines Extended to July 15, 2020

  • Tax Return Filing Date

  • 2019 IRA and Roth IRA contributions

  • HSA contributions

2020 RMDs Waived

  • 2019 RMDs due by April 1, 2020

  • 2020 RMDs from IRAs and company plans

  • 2020 Beneficiary RMDs

  • IRA owners age 70½ or older can still take Qualified Charitable Distributions (excluded from taxable income; will not count toward 2020 RMDs since they have been waived)

RMD Rollover Eligibility

  • For those who have taken their 2020 RMD, funds can be returned

  • Must occur within 60 days of receipt of funds

  • Limit to one rollover per year; excludes those who rolled over another distribution taken in the prior 12 months

  • Excludes non-spousal beneficiaries

Penalty-Free Premature Distributions

  • 10% federal penalty tax waived on 2020 coronavirus-related distributions from IRAs and employer-sponsored retirement plans up to $100,000

  • Income treated as 2020 income or spread over 3 years

  • All or portion of sum withdrawn may be re-contributed within 3 years; not subject to usual annual contribution caps

Plan Loan Relief

  • Increased maximum amount to 100% of vested account balance up to $100,000

  • Applies to loans taken within 180 days of bill enactment

  • Due dates for new or outstanding loans extended by 1 year

If you have questions or would like to discuss how this affects you directly, please contact your relationship manager.

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