IRS Issues FAQs on CARES Act Retirement Plan, IRA Provisions

IRS Issues FAQs on CARES Act Retirement Plan, IRA Provisions

Upcoming Guidance to be Consistent with 2005 Katrina Guidance

May 6, 2020


The IRS has issued new FAQs on CARES Act provisions related to retirement plans and IRAs. The IRS and the Treasury Department are also developing additional CARES Act guidance, to be released in the near future, that will be similar to guidance in IRS Notice 2005-92 that applied to the treatment of distributions and plan loans by victims of Hurricane Katrina under the Katrina Emergency Tax Relief Act of 2005.

Several of the just-released FAQs refer readers to sections of IRS Notice 2005-92. Certain FAQs apply to individuals, while others apply to employers and plan administrators. They address topics including:

  • The definition of “qualified individual” for purposes of the relevant CARES Act provisions;
  • Tax treatment and repayment of coronavirus-related distributions;
  • Employer adoption of CARES Act distribution and loan rules;
  • Reliance by plan administrators on individuals’ certifications regarding coronavirus-related distributions; and
  • Reporting of coronavirus-related distributions by plans, IRAs, and qualified individuals.

An earlier IAA Today story discusses CARES Act provisions related to retirement plans and IRAs, including coronavirus-related distributions and relief related to loans from retirement plans.

Additional information and analysis is available on the recording of the IAA’s April 7 webinar What Advisers Need to Know About the CARES Act.


TAGS: CARES Act, Coronavirus, COVID-19, IRAs, IRS, Retirement Plans  

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