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Taxes on CARES Act IRA Withdrawals - Form 8915-E


If you took a CARES Act IRA withdrawal in 2020, but still need help in filing your taxes, in this video, I look at the mechanics of Form 8915-E and how it fits into your return so that you can spread your taxes out over 3 years! ***Informational and educational purposes only. Please consult with your CPA or tax preparer for confirmation.*** To learn more, visit our website: *** Free Guide *** #pranawealth #patrickking #CARESAct --- About Patrick King CFP® --- Patrick King is a fee-only financial advisor in Atlanta and the Founder of Prana Wealth. Over his career, Patrick has helped CEOs, all-star athletes, Grammy-winning artists, and many others build their wealth, retire sooner, and create a legacy. Patrick enjoys yoga, mountain biking, golf, travel photography, and Clemson football. Let’s connect: LinkedIn – PatrickBKing Facebook – @pranawealth Instagram – @pranawealth Twitter – @PranaWealth ---------- DISCLAIMER: This is a publication of Prana Wealth Management LLC. All opinions of the authors expressed herein are as of the date of publication and are subject to change. Any information presented herein is not an offer to buy or sell, nor a solicitation to buy or sell any securities or products mentioned. Any investment, tax, legal, or estate planning or information is to be considered general in nature and is not intended as personalized financial planning advice. Always consult a financial, legal, or tax professional regarding your specific situation. Different investments have varying degrees of risk and there is no assurance that they will be suitable for a particular person’s portfolio. Past performance is not indicative of future results. Prana Wealth Management LLC is a registered investment adviser in the state of Georgia and other states where it is excluded or exempted from registration requirements. Registration as an investment adviser does not constitute an endorsement from securities regulators. Prana Wealth Management LLC receives compensation from YouTube for the presence of advertising before, after, and during this video content. Prana Wealth Management LLC does not control the content or presence of any advertisements. The presence of any advertisement does not constitute an endorsement of the ad, company, entity, or product by Prana Wealth Mangement LLC. ---------- CONTENT DISCLAIMER: The views and opinions expressed through this media or in comments on this channel are those of the creators and do not necessarily reflect the views and opinions held by this channel's broadcaster. Due to the social nature of this channel, these videos may contain content copyrighted by another person or entity. This channel's owner claims no copyright to said content. The broadcaster of this channel cannot be held accountable for the copyrighted content. The broadcaster shares and strives to verify information, but cannot warrant the accuracy of copyrights or completeness of the information on this channel. Any copyrighted material shared on this channel is intended to be shared by Fair Use. If you have a complaint about the use of copyrighted material, please contact the broadcaster prior to making a copyright claim. Any infringement is unintentional and will be rectified to all parties' satisfaction....(read more)



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The CARES Act (Coronavirus Aid, Relief, and Economic Security Act) passed in March 2020 aimed to provide financial assistance to Americans struggling during the COVID-19 pandemic. One of the provisions of the CARES Act is related to IRA withdrawals for those impacted by the pandemic. However, as with any tax-related matters, there are some critical considerations to keep in mind. Under the CARES Act, individuals affected by the pandemic can take up to $100,000 in retirement account distributions without the usual 10% penalty applied to those under age 59 1/2. This includes not only individual retirement accounts (IRAs) but also 401(k)s and other qualified retirement plans. These distributions may be taken in 2020 alone, and the income taxes due can be spread out over three years: the current year of distribution plus the next two. Additionally, an individual may repay any portion or all of the distribution to a plan or IRA within three years of the distribution. However, individuals must be mindful that even if they qualify for penalty-free withdrawals, the income tax still applies. They will be taxed based on their regular income tax rate, and given the potential for the distribution amount to boost their taxable income, individuals should prepare to plan for the added tax liability. Tax forms are important to track these withdrawals efficiently, and Form 8915-E (Qualified Disaster Retirement Plan Distributions and Repayments) is what impacts a taxpayer’s federal income tax return for the year in which the distribution was taken.  Form 8915-E can be employed by eligible occupants of disaster affected regions who wish to minimize their tax liability after requesting a COVID-19 IRA withdrawal, who have already taken one, or who plan to repay funds to their account to minimize their tax liability after the initial distribution. Form 8915-E has several instructions and revisions over its five page structure, which could prove demanding for those unfamiliar with tax forms. Ultimately, the CARES Act can provide much-needed relief for those affected by the pandemic, but individuals must understand the tax implications of withdrawing from retirement accounts. Keeping track of this with Form 8915-E can be vital in minimizing the tax burden. https://inflationprotection.org/taxes-on-cares-act-ira-withdrawals-form-8915-e/?feed_id=76455&_unique_id=6406ba3a3e757 #Inflation #Retirement #GoldIRA #Wealth #Investing #caresactform8915e #caresactspreadingouttaxesover3years #feeonlyfinancialadvisor #feeonlyfinancialplanner #filingtaxescaresactira #financialadvisorinatlanta #financialplannerinatlanta #FinancialPlanning #Form8915E #howtofilloutform8915e #irawithdrawalspreadingouttaxesover3years #PatrickKing #PranaWealth #retirementplanning #taxesoncaresactirawithdrawal #QualifiedRetirementPlan #caresactform8915e #caresactspreadingouttaxesover3years #feeonlyfinancialadvisor #feeonlyfinancialplanner #filingtaxescaresactira #financialadvisorinatlanta #financialplannerinatlanta #FinancialPlanning #Form8915E #howtofilloutform8915e #irawithdrawalspreadingouttaxesover3years #PatrickKing #PranaWealth #retirementplanning #taxesoncaresactirawithdrawal

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