Regarding corona-virus related distributions (CVDs) taken from IRAs in 2020: AThe maximum CVD amount was $50,000.BCVDs are always subject to federal income tax, but they are exempt from the 10% early distribution penalty tax.CYou could take up to $100,000 of CVDs from your IRAs.DCVDs must be repaid to an IRA or eligible qualified plan account within five years of the distribution date.

Answered: Regarding corona-virus related…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Regarding corona-virus related distributions (CVDs) taken from IRAs in 2020:

A	The maximum CVD amount was $50,000.
B	CVDs are always subject to federal income tax, but they are exempt from the 10% early distribution penalty tax.
C	You could take up to $100,000 of CVDs from your IRAs.
D	CVDs must be repaid to an IRA or eligible qualified plan account within five years of the distribution date.

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The CARES Act of 2020 offers substantial assistance to companies and individuals harmed by the COVID-19 epidemic. This involves permitting retirement investors impacted by the coronavirus to withdraw up to $100,000 of their retirement funds without incurring early withdrawal fines and providing them with a longer window for repaying the income tax owed on the amounts withdrawn.

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