Tax Resolution Attorney John P. Willis Writes About Tax Breaks Granted For Early Withdrawals From Retirement Accounts Due To Covid-19 Hardships.
Tax resolution attorney John Willis, CEO and founder of IRSALLSTAR provides an overview of provisions made for those who are having to raid their retirement accounts due to hardships caused by COVID-19.
Fairhope, AL, July 31, 2020: Tax Attorney John Willis, CEO and founder of IRSALLSTAR.com, recently published an article on his website entitled “A Tax Break For Tough Times,” in which Mr. Willis provides an overview.
Willis acknowledges that, “Coronavirus is teaching everyone about tough times.” He continues, “And, for those of you who’ve had the wherewithal, the discipline and the foresight to establish a retirement plan to make smooth sailing of your golden years, you’re probably feeling pretty fortunate now that you have that nest egg. Times might be tough, but not unbearable. Maybe you are among the many people having to raid their retirement plans just to make ends meet and in some cases to put food on the table. But, keep in mind that far too many families do not have that safety net.”
“Fortunately,” says Willis, “Uncle Sam has made provisions due to the challenges created by COVID-19 for those of you who do have retirement plans to raid. Here are some of the details of those provisions.”
First Willis talks about a payback plan, writing, “As part of the CARES Act, qualified individuals impacted by the coronavirus pandemic can pay back funds withdrawn from a qualified retirement plan over a three-year period.” He goes on to add, “In ordinary circumstances, if you were to take a hardship withdrawal from your retirement plan, you would permanently reduce your balance. You would not be allowed to put the money withdrawn back in your retirement account once the hardship had passed. And, depending on your company’s policies, you also might not be able to resume contributing for six months or more. Of course, this may or may not be a consideration if you are no longer employed.”
Additionally, Willis states, “The new law also temporarily waives the 10 percent early withdrawal penalty for coronavirus-related distributions (CRDs) made between January 1 and December 31, 2020. In addition, the CARES Act exempts CRDs from the 20 percent mandatory withholding that normally applies to certain retirement plan distributions.”
The entire article can be read at: http://www.irsallstar.com/blog/a-tax-break-for-tough-times.php
ABOUT JOHN WILLIS
Mr. Willis believes strongly in supporting and representing the “underdog” and has devoted his entire professional life to protecting and defending those who need it most. As an attorney, Mr. Willis takes his role as “counselor” seriously. His knowledge, creativity and persistence are valuable assets that provide substantial benefits to his clients. He has represented individuals and businesses across the Gulf Coast for over 21 years and, he brings together an abundance of skills and experience that can be of assistance to almost anyone.
ABOUT THE IRSALLSTAR TEAM
The IRSALLSTAR team has developed a winning formula to ensure that each client’s individual needs are specifically met. Upon becoming a client of Mr. Willis’ law firm, that client’s immediate needs are assessed, and long-term goals are defined. Experienced professionals on the IRSALLSTAR team then assist each client in developing and implementing a custom-tailored game plan to provide both short-term and long-term relief from his or her serious tax problems. All firm clients are continually coached toward successful tax resolution and final victory over their challenges with the IRS and state taxing authorities. The entire blog can be found at http://www.irsallstar.com/blog/irs-tax-controversy-even-death-cant-stop-the-irs.php
To learn more about Mr. Willis and his law firm please visit http://www.IRSALLSTAR.com or call toll-free 877-254-4254.
Willis acknowledges that, “Coronavirus is teaching everyone about tough times.” He continues, “And, for those of you who’ve had the wherewithal, the discipline and the foresight to establish a retirement plan to make smooth sailing of your golden years, you’re probably feeling pretty fortunate now that you have that nest egg. Times might be tough, but not unbearable. Maybe you are among the many people having to raid their retirement plans just to make ends meet and in some cases to put food on the table. But, keep in mind that far too many families do not have that safety net.”
“Fortunately,” says Willis, “Uncle Sam has made provisions due to the challenges created by COVID-19 for those of you who do have retirement plans to raid. Here are some of the details of those provisions.”
First Willis talks about a payback plan, writing, “As part of the CARES Act, qualified individuals impacted by the coronavirus pandemic can pay back funds withdrawn from a qualified retirement plan over a three-year period.” He goes on to add, “In ordinary circumstances, if you were to take a hardship withdrawal from your retirement plan, you would permanently reduce your balance. You would not be allowed to put the money withdrawn back in your retirement account once the hardship had passed. And, depending on your company’s policies, you also might not be able to resume contributing for six months or more. Of course, this may or may not be a consideration if you are no longer employed.”
Additionally, Willis states, “The new law also temporarily waives the 10 percent early withdrawal penalty for coronavirus-related distributions (CRDs) made between January 1 and December 31, 2020. In addition, the CARES Act exempts CRDs from the 20 percent mandatory withholding that normally applies to certain retirement plan distributions.”
The entire article can be read at: http://www.irsallstar.com/blog/a-tax-break-for-tough-times.php
ABOUT JOHN WILLIS
Mr. Willis believes strongly in supporting and representing the “underdog” and has devoted his entire professional life to protecting and defending those who need it most. As an attorney, Mr. Willis takes his role as “counselor” seriously. His knowledge, creativity and persistence are valuable assets that provide substantial benefits to his clients. He has represented individuals and businesses across the Gulf Coast for over 21 years and, he brings together an abundance of skills and experience that can be of assistance to almost anyone.
ABOUT THE IRSALLSTAR TEAM
The IRSALLSTAR team has developed a winning formula to ensure that each client’s individual needs are specifically met. Upon becoming a client of Mr. Willis’ law firm, that client’s immediate needs are assessed, and long-term goals are defined. Experienced professionals on the IRSALLSTAR team then assist each client in developing and implementing a custom-tailored game plan to provide both short-term and long-term relief from his or her serious tax problems. All firm clients are continually coached toward successful tax resolution and final victory over their challenges with the IRS and state taxing authorities. The entire blog can be found at http://www.irsallstar.com/blog/irs-tax-controversy-even-death-cant-stop-the-irs.php
To learn more about Mr. Willis and his law firm please visit http://www.IRSALLSTAR.com or call toll-free 877-254-4254.
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