Coronavirus Aid, Relief, and Economic Security (CARES) Act: Summary
The relief options listed below are automatically provided. Filers do not need to take any additional steps to qualify. Exclusions can still be filed for those wishing to extend beyond the relief deadlines to October 15, 2020. Each state has the option to set their own relief policies to please check with your state on filing and payment deadlines. Most states are correlating their deadlines with Federal deadlines, but slight differences may be present.
Federal Tax Updates:
- 2019 Federal Tax Returns and Payments are due July 15, 2020
- 2020 Q1 Federal Estimates are now due July 15, 2020
- 2020 Q2 Federal Estimates are still due June 15, 2020
- The last date to contribute to an IRA for the 2019 tax year is July 15, 2020
Kansas Tax Updates:
- 2019 Kansas Tax Returns and Payments are due July 15, 2020
- 2020 Q1 Kansas Estimates are still due April 15, 2020
- 2020 Q2 Kansas Estimates are still due June 15, 2020
Missouri Tax Updates:
- 2019 Missouri Tax Returns and Payments are due July 15, 2020
- 2020 Q1 Missouri Estimates are now due July 15, 2020
- 2020 Q2 Missouri Estimates are still due June 15, 2020
2020 Required Minimum Distributions
- All RMDs have been suspended for 2020. This includes IRAs, 401(k)s, Roth 401(k)s, and Inherited IRAs.
- If you are subject to take an RMD, then this CARES Act waiver applies to you regardless of your age.
- Even inherited IRAs that are normally to be liquidated within 5 years of the original account-holder’s death are not required to take a distribution in 2020. The current understanding is that beneficiaries have an extra year to fulfill the 5-year requirement since RMDs can be skipped in 2020.
- If you have already taken an RMD in 2020 it technically cannot be reversed. Current interpretations of the CARES Act say that if the distribution was within the last 60 days, you can re-contribute the amount back into your retirement account – assuming the distribution qualifies for a rollover. Tax withholding cannot be reversed, but the IRS could potentially refund the withdrawal when your 2020 return is filed.
- If the RMD was taken more than 60 days ago, you may still be able to re-contribute the distribution if you can demonstrate coronavirus impact. Coronavirus impact is if you, a spouse, or somebody in your household got the virus, or if the virus negatively affected you financially (such as the inability to work or getting laid off).
- Inherited IRAs do not have the ability to re-contribute to the retirement account.
- Any 72(t) distributions do not qualify for the RMD waiver and their scheduled distribution is still required in 2020.
This information is not intended to offer tax advice. Please consult with your tax professional for details specific to your situation.