Question
As part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) of 2020, legislation provided for expanded distribution options and favorable tax treatment
As part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) of 2020, legislation provided for expanded distribution options and favorable tax treatment to COVID-19-related distributions from retirement plans or IRAs during 2020. All of the following statements regarding these distributions are true, EXCEPT:
Eligible individuals included those diagnosed with COVID-19 or individuals whose spouse or dependent was diagnosed with the illness.
Eligible taxpayers could take penalty-free COVID-19-related distributions of up to $100,000 from retirement plans or IRAs during 2020.
Taxpayers who took COVID-19-related distributions from a retirement plan (including IRAs) in 2020 could have elected to include taxable amounts in their income ratably over a three-year period.
Taxpayers who took COVID-19-related distributions from a retirement plan (including IRAs) in 2020 were subject to a 10% penalty for early distribution.
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