Coronavirus-related relief for retirement plans and IRAs questions and answers

12 May Coronavirus-related relief for retirement plans and IRAs questions and answers

Yesterday, the IRS released additional guidance on
the CARES Act coronavirus relief distributions (“CRDs”) and loans for retirement plans and IRAs. The IRS confirmed that CRDs and expanded loan provisions are optional, and the plan sponsor has the sole discretion whether to implement these provisions. However, regardless of whether the plan sponsor elects to implement these provisions, plan participants who take a distribution in 2020 may still take advantage of the favorable tax treatment (exemption from the 10% early withdrawal penalty and spread of the taxation over a three-year period). https://lnkd.in/epe5Yyk #retirementplans #covid19