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I hope this issue of the Tax Reduction Letter finds you and your family in good health. Warmest good wishes at this difficult time from all of us at the Bradford Tax Institute.
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As we all know too well, the COVID-19 virus has had a devastating impact on our country.
We may not be able to do much about the health issues we face, but at least our businesses can get some assistance from the government in the form of the Coronavirus Aid, Relief, and Economic Security Act (also known as the CARES Act).
One provision of the CARES Act lets you withdraw up to $100,000 from your IRA and other retirement accounts, avoid early withdrawal penalties, and get generous options on repayment.
We’ll also tell you why you don’t have to take the required minimum distribution (RMD) from your IRA.
We’ll explain everything in detail when you read my new article titled Tax Tips: COVID-19: CARES Act Allows $100,000 Tax-Free IRA Grab and Repay.
Three ways our fact-filled article can help you:
- We’ll explain important COVID-19 distribution (we’ll call these CVDs) basics including:
- Exactly how much money you can borrow from your IRAs
- How you can make recontributions (paybacks) to your IRA within three years
- Why your withdrawals and later recontributions are counted as federal income-tax-free roll-over transactions
- And a lot more
You’ll get the whole story when you read the full article.
- You’ll learn if you qualify for the CVD. Some IRA owners will clearly qualify for the CVD. Others will have to wait for IRA guidance. For now, the CVD applies to people who fall into one of six categories. We’ll tell you what they are when you read the full article.
- We’ll answer common questions like these:
- What happens if I don’t recontribute to the CVD within the three-year window?
- Can the one-IRA-rollover-per-year limitation prevent me from taking advantage of CVD benefits?
- Can I take a CVD type of distribution from my company’s tax-favored retirement plan?
- And a lot more
We’ll provide crystal clear answers to these important questions when you read the full article.