White Nelson Diehl Evans CPAs
Make a Payment Client Log in
Carlsbad, CA
760-729-2343 info@wndecpa.com
Irvine, CA
714-978-1300 info@wndecpa.com
Menu
  • Our Firm
    • Close
    • Our Team
    • Our Impact on the Community
  • Services
    • Close
    • Accounting & Financial
    • Advisory
    • Audit
    • ERISA Audits
    • ESOP
    • Estate & Trust Planning
    • Tax Planning Preparation
    • Tax Services
  • Industries
    • Close
      • Aging Services & CCRC
      • Business Services
      • Construction & Contracting
      • Distribution (Wholesale)
      • Estate & Trust Services
      • Employee Stock Option Plans, ESOP
      • Food & Beverage
      • Franchises
      • Government
      • Healthcare & Medical
      • Leasing & Finance
      • Manufacturing
      • Nonprofit
      • Professional Services
      • Real Estate
      • Retail
      • Retail Fuel Outlets
      • Staffing Agencies
      • Technology
      • Transportation
  • Resources
    • Close
    • Blog
    • E-Guides
  • Locations
  • Careers
    • Close
    • Careers at WNDE
    • Current Opportunities
    • The WNDE Advantage
    • Benefits and Programs
    • Experienced Professionals
    • Students
      • Close
      • Summer Leadership Program
      • Internships
  • Contact Us
  • Make a Payment
  • Client Log in
White Nelson Diehl Evans CPAs
Menu
  • Our Firm
    • Close
    • Our Team
    • Our Impact on the Community
  • Services
    • Close
    • Accounting & Financial
    • Advisory
    • Audit
    • ERISA Audits
    • ESOP
    • Estate & Trust Planning
    • Tax Planning Preparation
    • Tax Services
  • Industries
    • Close
      • Aging Services & CCRC
      • Business Services
      • Construction & Contracting
      • Distribution (Wholesale)
      • Estate & Trust Services
      • Employee Stock Option Plans, ESOP
      • Food & Beverage
      • Franchises
      • Government
      • Healthcare & Medical
      • Leasing & Finance
      • Manufacturing
      • Nonprofit
      • Professional Services
      • Real Estate
      • Retail
      • Retail Fuel Outlets
      • Staffing Agencies
      • Technology
      • Transportation
  • Resources
    • Close
    • Blog
    • E-Guides
  • Locations
  • Careers
    • Close
    • Careers at WNDE
    • Current Opportunities
    • The WNDE Advantage
    • Benefits and Programs
    • Experienced Professionals
    • Students
      • Close
      • Summer Leadership Program
      • Internships
  • Contact Us
  • Make a Payment
  • Client Log in

CARES Act FAQ: Retirement Plan Withdrawals

07
Apr
Blog
All information is based on our current understanding as of the date that it is posted. Please keep in mind this information is changing rapidly – it can and likely will change. Some information becomes outdated the same date it posted. Although we will monitor and update this page as new information becomes available, please do not rely solely on this page. We encourage you to contact your WNDE advisor for the latest information.

On March 27th, President Trump enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The historic $2.2 trillion stimulus bill includes an allowance for penalty-free early withdrawals from retirement accounts.

Below, we address some of the common questions regarding this particular initiative. If you cannot find the answer to your question, please do not hesitate to reach out to your WNDE accounting advisor for further assistance.

What changes did the CARES Act make to retirement withdrawals?

For 2020, eligible plan participants can now receive coronavirus-related distributions from their retirement plans (401(k)-type defined contribution plans or individual retirement accounts (IRAs)).

Am I eligible to make a withdrawal from my retirement account?

To be eligible, you must fit at least one of the following criteria:

  1. You or your spouse or dependent has been diagnosed with COVID-19, or
  2. You have suffered adverse financial consequences due to COVID-19 (e.g., suffering loss of business, unable to work due to childcare, required to quarantine, put on furlough, etc.)

Plan participants will simply self-certify that they meet the conditions for a coronavirus-related distribution.

How much can I withdraw from my retirement account?

Eligible individuals can take out up to $100,000.

If I make early withdrawals, do I have to pay a penalty?

No, if you make an eligible withdrawal you are exempt from the 10 percent early withdrawal penalty. Additionally, the 10 percent penalty waiver applies retroactively to withdrawals beginning January 1, 2020.

When do I pay taxes on the money I withdraw?

Income taxes are still owed on withdrawn amounts. The CARES Act allows for tax payments to be spread over a three-year period.

Is there a way to re-invest the money that I take out?

Yes, individuals who make coronavirus-related withdrawals may replace the money within three years, regardless of the annual contribution level of their plan. Additionally, they may also be able to recover the federal and state income taxes that they paid.

 I already have one or more loans on my 401(k), can I still take a coronavirus-related distribution?

This depends on the particular rules of your plan—consult your plan sponsor.



Categories
  • Blog
  • News
Recent Posts:
  • Tips for Budgeting

    10 Tips for Better Budgeting…

    14 Oct
  • IRS Check

    Still Waiting for the IRS to Cash Your Check?

    14 Oct
  • Unemployment Benefits

    Do You Know Unemployment Benefits Are Taxable?

    14 Oct
  • 1099-NEC

    Ready for the 1099-NEC?

    14 Oct
  • Old Tax Records

    Thinking of Dumping Old Tax Records?

    16 Sep

The 90-year legacy of White Nelson Diehl Evans
is a tribute to the confidence our clients have in us.

White Nelson Diehl Evans LLP.
2875 Michelle Drive, Suite 300
Irvine, California 92606
TEL 714-978-1300

Explore:

  1. WNDE Home
  2. Our Firm
  3. Services
  4. Industries
  5. E-Guides
  6. Locations
  7. Careers
  8. Contact Us

Newsletter

Copyright © 2019. All Rights Reserved.
White Nelson Diehl Evans LLP. 2875 Michelle Drive, Suite 300 Irvine, California 92606 TEL 714-978-1300
Client Login

Forgot password?


[contact-form-7 id=”4250″ title=”Fraud Detection Booklet”]

[contact-form-7 id=”3415″ title=”Tax Planning Guide”]