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[Sticky] 2020 CARES ACT: NEW STIMULUS BILL DOES NOT APPLY TO SEPP 72-T PLANS  


dlzallestaxes@msn.com
Posts: 52
(@dlzallestaxesmsn-com)
Illustrious Member
Joined: 1 year ago

Section 2202 begins:

(1) IN GENERAL.—Section 72(t) of the Internal Revenue Code of 1986 shall not apply to any coronavirus-related distribution.

2 Replies
Jatrickyday
Posts: 1
(@jatrickyday)
Active Member
Joined: 4 months ago

Please clarify  if taking an IRA withdrawal,  up to the $100K limit in 2019, per qualifying for a Corona virus exemption, will or will not "BUST" my existing SEPP?....

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dlzallestaxes@msn.com
Posts: 52
(@dlzallestaxesmsn-com)
Illustrious Member
Joined: 1 year ago

IT WILL BUST YOUR SEPP IF YOU TAKE "ANY" ADDITIONAL AMOUNT.

That is why I posted the regulation as soon as I read the CARES ACT. It is the first provision in the Retirement Plan section, even before the provisions about Early Distributions or RMD.

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