financial planning Tag

Tips on How the CARES Act Offers Important Tax Incentives and Planning Opportunities

The historic $2.2 trillion CARES Act contains an array of favorable provisions for individual taxpayers, but many of those provisions are only available in 2020. Nevertheless, there are also a number of lesser-known provisions that can be utilized for effective long-term financial planning and tax benefits. Withdrawing Funds from Your IRA Without Enduring Harsh Tax Penalties The CARES Act allows eligible individuals to take up to $100,000 of distributions from their Individual Retirement Account (IRA) or employer-sponsored retirement plan (e.g., 401k) during 2020 and receive the following relaxed tax rules: Exempt from the 10 percent early withdrawal penalty that would otherwise apply...

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