One of the most significant tax breaks for individuals included in the recently passed CARES Act was a temporary suspension of the annual required minimum distribution rules for IRA’s and certain other defined contribution accounts. Specifically, Congress has recognized that taking the required minimum distribution (RMD) in 2020 could force individuals to liquidate a

disproportionately large portion of their IRA due to the need to satisfy this year's RMD during a year where the stock market has been so profoundly impacted. As such, the following rules have been implemented for this year ONLY:

? RMD’s are waived for 2020 on IRA’s, including inherited IRA’s.

? The waiver includes the April 1 requirement for people who turned 70 1/2 In 2019 and deferred their first distribution until April 1, 2020.

? The amount someone can borrow from their 401(k) has increased from $50,000 or up to 50% of their account, to $100,000 or up to 100% of their account.

? Individuals under the age of 59 1/2 have (with limited exceptions, such as inherited IRA’s) been subject to (in addition to income tax) a 10% penalty if they took distributions from their retirement account. That 10% penalty has been waived on distributions up to an amount of

$100,000 for Covid-19 related expenses. A Covid-19 related expense has been broadly defined to include being diagnosed with the virus, leaving a job to care for someone who was so diagnosed, being quarantined, being furloughed from a job, being layed-off, as a few examples.