Williams Parker (Florida): Why Individuals Should Care About the CARES Act: Retirement Plans and Charitable Contributions

The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) provides various relief provisions for individuals, including provisions that benefit individuals in relation to their retirement plans and that provide an increase in allowable charitable deductions.

Income Taxation of Retirement Plans

10 Percent Additional Tax Waived for Coronavirus-Related Distributions
Generally, the IRS imposes ordinary income tax on retirement plan distributions. The IRS also imposes a 10 percent additional tax on retirement plan distributions that are included in the distributee’s gross income unless the distributee is over the age of 59½ or another exception is met. MORE.

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