April 7, 2020
Due to the COVID-19 pandemic, the Senate passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which extends the tax filing deadline until July 15, 2020. Part of this extension also changes the contribution dates for Individual Retirement Accounts (IRAs).
CCU members need to remember, from January to July, to identify which tax year they want their contribution to be put toward.
For the 2019 tax year, you may contribute up to $6,000 to Roth and Traditional IRAs. If you are over the age of 50, you may also make an additional catch-up contribution of $1,000 for 2019.
In addition to the contribution extension, the CARES Act also allows those directly impacted by
- Withdraw up to $100,000 from an IRA without the usual 10% penalty for owners under the 59½ age threshold.
- Withdraw up to $100,000 from an IRA without the associated income tax if it is fully repaid to the IRA within 3 years. If the money is not fully repaid to the IRA within 3 years, then the associated income tax can be spread out evenly over 3 years.
As a reminder, the SECURE Act is in effect. This means, if you were not yet 70 ½ in 2019, you can continue to make contributions as long as you still have earned income.
If you want to take advantage of this extension and make IRA transactions, please call us at 815-235-5855 or 800-711-3277 or email us at firstname.lastname@example.org.