Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, special rules were implemented to provide relief to Americans impacted by the pandemic. This relief includes providing easier access to retirement and IRA funds for those who need it through special distribution options and rollover rules, as well as permissible loans from certain retirement plans.
The 14 Q&As released by the IRS addresses questions by both individuals and administrators related to the relief for retirement plans. The IRS, through the Q&As, advises additional guidance will be coming soon and provides clarification on, among other things, qualifications for eligibility under the special rules, tax requirements and repayment options related to distributions, loan options and repayment concerns, and reporting requirements.
The IRS Q&A is available here.
Compliance Resource’s pandemic related information and resources, including a recording on the COVID-19 Impact on IRAs and HSAs by Deborah Crawford, is available here.
