Clarifying the Year-End Stimulus' Bill CRD Relief, Jan. 21, 2021

Many people have been confused about whether the year-end stimulus bill extended the tax relief for coronavirus-related distributions (CRDs) from retirement plans. The law actually did not extend the CARES Act CRD provisions into 2021. The new law provides the same type of tax relief for non-Covid-19 disasters, such as wildfires and hurricanes. Additionally, RMDs are back on the table for 2021--the year-end stimulus bill did not extend the RMD waiver into 2021. 2021 RMDs are calculated using the year-end account balance just like any other year. For more information on the CARES Act retirement-related relief, see Q .