COVID Hardship Distribution Relief: Three-Year Delayed Taxation, Repayments, Plan Loans, and Form 8915-E

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Course Details

Course Information

smart_display Format
On-Demand
signal_cellular_alt Difficulty Level
Intermediate
work Practice Area
Tax Preparer

Date & Time

event Date
Thursday, January 14, 2021
schedule Time
1:00 p.m. ET./10:00 a.m. PT
timer Program Length
110 minutes

Credit Information

BARBRI is a NASBA CPE sponsor and this 110-minute webinar is accredited for 2.0 CPE credits.
BARBRI is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).

$197.00

This course will explain the latest guidance on Section 2022 COVID relief for qualified retirement plans, including individual retirement accounts (IRAs), for tax professionals working with businesses and individuals participating in these plans. Our retirement expert will cover delaying taxation of certain distributions, repaying these same distributions, the relaxation of repayment terms for plan loans, and qualifying to avoid the premature distribution penalty.

Faculty

Griffin H. Bridgers

Member

Hutchins & Associates, LLC

Mr. Bridgers' practice encompasses all areas of private wealth and family business. In addition to estate planning and estate administration, he is experienced in mergers and acquisitions, taxation, business transactions, franchising, commercial contracts, asset protection, executive compensation, employee benefits, qualified and non-qualified retirement plans, and nonprofit organizations. He counsels closely-held and family businesses, and nonprofit organizations, with their planning, succession, and liquidity needs in a variety of industries including tech, restaurant and retail, healthcare, manufacturing, construction, real estate, financial services, consulting, and professional staffing.

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Description

Section 2022 of the CARES Act provides relief for amounts withdrawn from IRAs and other qualified plans due to the current pandemic. This section allows a qualified individual to spread the taxation of amounts up to $100,000 and withdrawn between Jan. 1 to Dec. 30, 2020, over a three-year period. Recipients are allowed to repay amounts withdrawn and avoid taxation if reported and restored timely.

The IRS anticipates issuing guidance on this relief but suggests, in the meantime, taxpayers follow guidance issued under Notice 2005-92 for Katrina Emergency Tax Relief Act of 2005. Section 2022 provides additional relief by delaying repayment of plan loans and increasing the limits on plan loans. For taxpayers who are no longer receiving benefits from their employer or unemployment, the ability to defer taxation of these distributions is critical.

Tax professionals working with individuals who participate in qualified retirement plans need to understand this relief's nuances, including how to report the distribution and qualifications on Form 8915-E. Our experienced panelist will explain the latest guidance on COVID relief for hardship withdrawals, including which taxpayers are eligible for relief, how to handle deferral of taxation of these distributions, amending returns for repayments of amounts withdrawn, and properly reporting transactions on Form 8915-E.

Listen as our authoritative presenter, a retirement tax law specialist, explains the latest guidance on Section 2022 COVID relief for qualified retirement plans, including IRAs, for tax professionals working with businesses and individuals. He will cover delaying taxation of certain distributions, repaying these same distributions, repayment terms relaxation for plan loans, and avoiding the premature distribution penalty.

Outline

CARES Act: Section 2202 relief
Qualified individuals
Qualified distributions
Taxation of distributions
Repayment of distributions and amended returns
Filing Form 8915-E
Relief for plan loans

Benefits

The panel will review these and other key issues:

How is a qualified distribution reported on Form 8915-E?
How is the reporting of this distribution coordinated with other disaster relief?
What requirements must be met to qualify for the three-year spread of taxation of distributions?
How does the subsequent repayment of distributions impact the calculation of tax?
What relief is available for plan loans under 2022 of the CARES Act?

NASBA Details

Learning Objectives

After completing this course, you will be able to:

Identify certain individuals qualifying for COVID hardship distribution relief
Determine how to report delayed taxation of qualifying distributions
Decide when loan payments from a qualified plan may be eligible for delayed repayment
Ascertain when an amended return is required for repayment of withdrawals

Field of Study: Taxes
Level of Knowledge: Intermediate
Advance Preparation: None
Teaching Method: Seminar/Lecture
Delivery Method: Group-Internet (via computer)
Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.