RMDs, Families First Cornonavirus Relief Act, In-House Updates & More
It’a been a long tax season in the midst of a long year, but we are beyond grateful for our wonderful, patient clients.
We are making some in-house changes here at Hinske-Clarey and want to remind you of some CARES Act tax provisions that may be of interest.
IRA distributions & returning RMDs in 2020: August 31st deadline
The IRS announced that anyone who took a Required Minimum Distribution (RMD) in 2020 from retirement accounts, now can return the funds to the account, per the intention of the CARES Act. If you have already distributed your RMD in 2020, you can return the funds to the account by August 31, 2020.
If you withheld tax in the distribution, you will not be able to “return” the withholding-portion, but the net check can be returned, potentially reducing your 2020 income. Click the 1st link below to see the IRS announcement.
Also, an individual may be eligible to take an early distribution of up to $100,000 from a retirement plan, penalty-free and partially-tax deferred if they have been affected by COVID-19. You may take a distribution either permanently, adding one-third of the total to your taxable income over the course of three tax years: 2020, 2021 & 2022 OR you may repay the distribution within three years of the distribution date, amending prior returns to re-coup the tax paid. The Act also expanded non-IRA retirement plan loan amounts and allows for longer loan repayment schedules. Click the 2nd link below for the IRS Q&A on this provision.
Families First Coronavirus Relief Act: Your responsibility as an Employer and your Rights as an Employee
As COVID-19 case levels have risen across the country, we wanted to remind individuals and employers about the Families First Coronavirus Relief Act.
Employers must provide paid time-off to employees affected by either the illness, caring for another with the illness, ordered to self-quarantine and/or lack of childcare due to closures. Please refer to the Department of Labor’s website for more detail.
Hinske & Clarey Update
Just as every business and individual in the country has been impacted in some way by this pandemic, Hinske & Clarey is no exception. In an effort to keep our staff and clients safe, we have implemented the following changes:
For the foreseeable future, our primary means of meeting with clients will be remotely, either by conference call or Zoom. We have had a lot of success during this time with remote platforms. We continue to offer the portal and the physical drop box as a means of transferring documents.
Due to illness and remote learning, we have a backlog and want to ensure that all returns are prepared on time but also, with the level of care that you are used to from H&C.
We have decided to permanently close the Daniel Island satellite office. Nikki will be working from her home office on Daniel Island for the foreseeable future and is happy to service the East Cooper area for drop off and pick-ups, upon request.
As always, our team is here for you and appreciates your patience and support as we navigate these interesting times. If you have any questions or want to learn more, please get in touch.