Alert Published April 21, 2020
RINA has been talking to clients about pandemic benefits, and we would like to share two time-sensitive deadlines with you.
No Required Minimum Distributions in 2020
The Coronavirus Aid, Relief, and Economic Security (CARES) Act includes a provision that suspends the mandate to take a Required Minimum Distribution (RMD) from your IRA or 401k for 2020.
If you took a RMD in the last 60 days, you can contribute the amount back into the retirement account, and it will be treated as a qualified rollover. Effectively, you can reverse an RMD if it was taken in the past 60 days.
In addition to the waiver of the RMD requirement, the CARE Act also allows individuals who have been impacted by the corona virus pandemic to take distributions from retirement plans, if returned within three years, the distributions will be treated as rollover.
The penalty for early withdrawal from retirement plans has been waived for 2020.
The CARE Act also increased the amount that you can borrow from your retirement account from $50,000 to $100,000
April 22 deadline for Social Security/Railroad Retirement recipients with dependents – who don’t file income tax returns
Yesterday the IRS announced that recipients of Social Security retirement, survivor or disability benefits and recipients of Railroad Retirement benefits who have dependent children, must use the IRS non-filer web-based tool by noon on this Wednesday, April 22, in order to receive the $500-per-child payment as part of their COVID-19 economic impact payment.
This requirement is only for people who did not file income tax returns in 2019 or 2018 which listed the dependent children.
If you do not use the tool by noon tomorrow, you can still receive the benefits but not until you file your 2020 income tax return,
Please contact your RINA professional if you would like help with either of these time-critical benefits.