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Time Is Running Out to Skip RMDs and Get 401(k) Coronavirus Hardship Withdrawals. Here’s How to Act to Minimize Future Taxes.
Source:
barrons.com
- Dec 10, 2020
Americans worried about financial stress from the pandemic have until year’s end to take advantage of tax-friendly provisions in the Cares Act, moves that require some planning to avoid draining retirement funds or unleashing a hefty tax bill in the future.
The Cares Act allows people of any age who have been affected by the pandemic to remove as much as $100,000 from individual retirement accounts and 401(k)s without the usual tax penalties. And it gives those people the chance to put the money back into the plans and avoid taxes if they can return the cash over the next couple of years. It also frees retirees from taking money out of IRAs and 401(k)s this year if they don’t want to pay taxes on distributions, or if they need time to recover from investment losses.
Here are some details and planning tips:
click source to read article
Category: General Business
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