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Can I do an IRA qualified disaster withdrawal and payback in the three years and withdrawal from two different IRA accounts?
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Despite erroneous reports in the media to the contrary, HR 133 did not extend the December 30, 2020 deadline to receive a coronavirus-related distribution (CRD). The media making the erroneous reports overlooked the section in HR 133 that explicitly excludes COVID-19 from the types of disasters to which the new law applies.
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Thank you for a clear answer. Will the new bill that just passed yesterday have that opportunity to withdraw and repay in three years?
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I'm not aware of any relevant bills being passed in Congress on February 4, 2020. Do you have a number for the bill?
[Edit] Perhaps you are referring to House Concurrent Resolution 11:
https://www.congress.gov/bill/117th-congress/house-concurrent-resolution/11/text
which I believe became Senate Concurring Resolution 5:
https://www.congress.gov/bill/117th-congress/senate-concurrent-resolution/5/text
Of course passing a bill does not make it law. Becoming law only happens after it has passed by both the House and the Senate and the President signs it, which for most bills that are introduced never happens.
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The bill that passed the House yesterday has very little chance of passing the Senate.
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@cats0413 wrote:
Thank you for a clear answer. Will the new bill that just passed yesterday have that opportunity to withdraw and repay in three years?
I don't think there are too many of us who are volunteering for free, who will want to wade through several thousand pages of proposed legislation to see what's in it. Once something is actually signed by the President, we can talk again. For now, the ability to take a covid-related distribution and apply the special rules ended on 12/30/20.
It would be nice to assume that everything good in the CARES act will be extended, but politics is rarely nice. Remember everyone in Congress professed to be upset that their definition of "dependent" for the stimulus credit excluded many types of legitimate dependents, and promised to fix it, but in round 2 of the stimulus, the definition was exactly the same.
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I am definitely not asking for anyone to wade through legislation...it still needs to go through the Senate and President and it seems that they want to move quickly. Just wanted to know off-hand for people that follow these things.
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@cats0413 wrote:
I am definitely not asking for anyone to wade through legislation...it still needs to go through the Senate and President and it seems that they want to move quickly. Just wanted to know off-hand for people that follow these things.
If it passes and the President signs it into law then allow 2-4 months for the IRS to design or modify forms to include it assuming that it would even be retroactive to 2020.
The 2020 COVID relieve 8915-E form for the 2020 disaster is still in the draft state at the IRS and we don't even have an estimate when that form will be ready.
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@macuser_22 wrote:
@cats0413 wrote:
I am definitely not asking for anyone to wade through legislation...it still needs to go through the Senate and President and it seems that they want to move quickly. Just wanted to know off-hand for people that follow these things.
If it passes and the President signs it into law then allow 2-4 months for the IRS to design or modify forms to include it assuming that it would even be retroactive to 2020.
The 2020 COVID relieve 8915-E form for the 2020 disaster is still in the draft state at the IRS and we don't even have an estimate when that form will be ready.
God help us all if any of it is retroactive to 2020.
The customer here is asking for an extension, that at least would not screw up millions of already-filed tax returns.