We continue to breakdown important provisions of the
Coronavirus, Aid, Relief, and Economic Security (CARES) Act, passed
on March 27, 2020. This Client Alert addresses the key provisions
affecting retirement plans.
Coronavirus-Related Distributions
The CARES Act allows retirement plans to offer
"coronavirus-related distributions" up to $100,000. It
also allows individuals to withdraw up to $100,000 from an IRA. An
individual may only withdraw $100,000 in the aggregate, from either
or both, in total. Because the aggregate amount is for an
individual, a spouse may withdraw an additional $100,000 from their
retirement plan and/or IRA account. The CARES Act waives the 10%
early withdrawal penalty for individuals under age 59½ who
take these distributions. The distributions may be taken ratably
into income over three years at the election of the individual.
