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21 Dec

December 2020: COVID-19 Distribution Expiring December 31, 2020

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The CARES Act provided an opportunity for employers to offer the option of allowing qualified individuals to take a distribution (up to $100,000) from their IRA, 401K or 403B without penalty, and spread the tax impact over a three-year period.
Qualifying individuals must meet one of the following criteria:

  • Diagnosed with COVID-19 by an approved CDC test
  • Spouse or dependent was diagnosed with COVID-19 by an approved CDC test
  • Experience adverse financial consequences as a result of:
    • Being quarantined, furloughed or laid off due to COVID-19
    • Unable to work due to lack of child care as a result of COVID-19
    • Closing or reducing hours of a business that you own or operate as a result of COVID-19

If you offered this opportunity to your employees, the deadline to take advantage of this opportunity is Thursday December 31, 2020. To read more about this distribution click here.