The IRS recently issued further guidance under the CARES Act expanding the categories of individuals eligible for coronavirus-related plan distributions and loans, and providing additional administrative guidance on relief offered under the Act.
As described in our April 3, 2020 Advisory, the CARES Act:
- eliminates the 10% early withdrawal penalty on up to $100,000 in coronavirus-related distributions for qualifying individuals;
- allows qualifying individuals to include coronavirus-related distributions in income over three years;
- allows qualifying individuals to repay coronavirus-related distributions to a retirement plan in one or more installments within three years;