Did you experience adverse financial consequences as a result of closing or reducing hours of a business that you own or operate due to SARS-CoV-2 or COVID-19?

Did you take a coronavirus-related retirement plan distribution between January 1, 2020, to December 30, 2020?

Retirement plan distributions up to an aggregate limit of $100,000 from all plans and IRAs qualify for NEW TAX Breaks.

• No, the 10% additional tax on early distributions does not apply to any coronavirus-related distribution.
• The distributions generally are included in income ratably over a three-year period, starting with the year in which you receive your distribution. For example, if you receive a $9,000 coronavirus-related distribution in 2020, you would report $3,000 in income on your federal income tax return for each of 2020, 2021, and 2022. However, you have the option of including the entire distribution in your income for the year of the distribution.

Call or Email us today if you have any questions about your retirement distributions, your business or taxes. (949) 877-3142 or info@marrachecpa.com

For FAQ’s from the IRS and other sources click here