The Coronavirus Aid, Relief, and Economic Security or “CARES Act” that was signed into law on Friday, March 27, 2020 has several sections that may impact you. You probably heard about the one-time direct deposit of up to $1,200 for individuals, $2,400 for married couples, plus an additional $500 per child. The payments are available for taxpayers who earn up to $75,000 (individuals) or $150,000 (for married couples). Taxpayers who do not file taxes but collect social security will be eligible for the payments as well.
The CARES Act waives the requirement for IRA and 401(k) plan holders (those aged 72 years old or those with inherited IRAs) to take a mandatory minimum distribution from their IRA in 2020. In other words, the Required Minimum Distribution (RMD) is suspended until 2021.
The CARES Act also adjusted the tax code on several other items that are beyond the scope of this post and our practice. If you have questions about those you should speak with your tax professional.