Mandelbaum Barrett PC’s Taxation and ERISA Departments will be keeping you informed as we learn more about the CARES Act and other developments affecting you as taxpayers. Here are a few updates:
Coronavirus Relief Package and its Impact on Retirement Plans
The recently enacted Stimulus package includes several significant changes that impact 401(k) Plans, 403(b) plans, IRAs and other retirement plans that have loan and hardship distributions provisions.
- Plan participants under age 59½ can make penalty free withdrawals from retirement plans. The withdrawals continue to be subject to income tax.
- For plans that allow for loans, the maximum loan limit has been increased from $50,000 to $100,000.
- Loan repayments are extended from 5 years to 6 years.
- Required Minimum Distributions are suspended for calendar year 2020.
Gift Tax Returns and Gift and Generation Skipping Transfer Tax Payments Extended
The IRS has announced that the due date for filing all 2019 tax year gift tax returns has been extended to July 15, 2020. Any gift and GST tax payments on account of transfers made during 2019 are now due on July 15, 2020.