In times of stress, it’s easy to focus only on the daily fluctuations of the market.  With the passage of the CARES Act, however, Americans now have new tools at their disposal to help combat the uncertainty that many presently face.  A few major items are noteworthy: For tax year 2020, all Required Minimum Distributions (RMDs) requirements from IRA and Employer-Sponsored Retirement Plans have been waived.The Act allows for Corona Virus-related distributions from an IRA or Employer-Sponsored Retirement Plan accounts so that a participant may access up to $100,000 of their account without penalty.If a Corona Virus-related distribution is taken, there is no early withdrawal penalty for those under the age of 59 ½, and the normal income tax burden of the distribution can be paid on a pro-rata basis over three years beginning on the day after the payment was received.

The Act also increases the amount that a participant is able to borrow from their Employer-Sponsored 401(k) Plan from the previous maximum of 50% of their account balance (capped at $50,000) to a new limit of 100% of the account value, not to exceed $100,000.No tool fits all applications, so we would encourage you to call and talk through your situation with your R&R Wealth Management Advisor so that they can help you to determine how any action or inaction will impact your situation.  In the meantime, additional information can be found at the following links: Holland & Knight: Implications for Retirement Plans under the CARES Act Forbes Magazine: CARES Act drastically changes Required Minimum Distribution rules for 2020     JD SUPRA: CARES Act – Important Changes to 401k or Other Retirement Plans