Expanded Taxpayer COVID-related Relief

Additional COVID-related Relief Is Here 

In a recent notice, the Internal Revenue Service recently expanded taxpayer relief related to required minimum distributions (RMDs) for 2020.  The CARES Act, passed earlier this year, allowed certain taxpayers to forgo taking their RMD in 2020; it also provided limited opportunities to return RMDs taken earlier in the year.  In the recent notice, the IRS has now expanded the ability of IRA and retirement plan account holders to return RMDs taken in 2020.  Effectively, any such account holder, including non-spousal inherited IRA account holders and anyone who took an RMD at any time in 2020, may now return an RMD.  Additionally, the IRS extended the timeframe for such action until August 31st.

In that same notice, the IRS also expanded the definition of COVID-related hardships where a taxpayer can take a withdrawal from their retirement account without taxes or penalty.  Now, in addition to those who were diagnosed or whose spouse was diagnosed with the virus, or who experienced financial hardship due to being quarantined, or laid off, those who experienced financial hardship because of having a job offer cancelled or start date delayed, had their compensation or self-employment income reduced are also eligible for such distributions. Taxpayers should use hardship withdrawals as a resource of last result, but the IRS’s recent announcement broadens the group of eligible account holders.

Please don’t hesitate to contact us if you have questions about this most recent COVID-related relief from the IRS.

Our Response To COVID-19

In light of the continuing contagion of the COVID-19 virus and the recommendations of the CDC and the Governor of Virginia, Graves-Light will be working remotely until further notice. Please know that Graves Light remains fully operational and able to meet the needs of new and existing clients. We have a business continuity plan that ensures our continued operation in the present circumstances, and our technology was designed to ensure that we have full access to all of the information that we need to monitor financial markets, effect trades and generally take all actions necessary to fully serve our clients. We also remain fully accessible by email and telephone; all calls to our main number will be routed to the appropriate party.

We recognize that these are unsettling times for everyone; people are concerned about their health and their finances. We believe the best way we can continue to serve clients is to ensure the health of all of our employees. We are privileged to have such wonderful clients, and we take our responsibilities to you very seriously. Please do not hesitate to contact us with your questions or concerns.

Thank you and please stay well.