If you had to dip into your IRA during 2020 to help you get through tough times, you may be able to repay your IRA over a 3-year period or have the taxes due on the distribution spread over three years if you are a qualified individual.
To be eligible for COVID-19 relief, coronavirus-related withdrawals or loans can only be made to an individual if:
- The individual (or the individual’s spouse or dependent) is diagnosed with the virus SARS-CoV-2 or with coronavirus disease 2019 (collectively, COVID-19) by a test approved by the Centers for Disease Control and Prevention (including a test authorized under the Federal Food, Drug, and Cosmetics Act);
- The individual experiences adverse financial consequences as a result of:
- The individual being quarantined, being furloughed or laid off, having work hours reduced, being unable to work due to lack of childcare, having a reduction in pay (or self-employment income), or having a job offer rescinded or start date for a job delayed, due to COVID-19;
- The individual’s spouse or a member of the individual’s household (that is, someone who shares the individual’s principal residence) being quarantined, being furloughed or laid off, having work hours reduced, being unable to work due to lack of childcare, having a reduction in pay (or self-employment income), or having a job offer rescinded or start date for a job delayed, due to COVID-19; or
- Closing or reducing hours of a business owned or operated by the individual, the individual’s spouse, or a member of the individual’s household, due to COVID-19.
If you have questions concerning withdrawals made from your IRA during 2020, please contact me at 702-469-9426 or cstevens@numbercruncherllc.tax.
Candace Stevens, CEO/President of
Number Cruncher LLC
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