COVID-19 has created an economic crisis and Congress and the IRS have employed numerous tactics to alleviate the impact. Among these efforts, are significant changes to retirement savings options including increased loan options, penalty eliminations, and RMD waivers. Regardless of whether an employee has been negatively impacted, employees should analyze their retirement plans and savings habits over the coming months to make the most of these changes to their retirement plan options. Employers must also analyze their plans to ensure employees are not negatively impacted in the event of large layoffs. In this program advisers will come away with a new perspective on old retirement plan rules to better guide their clients during this uncertain time.
Publication Date: June 2020
Designed For
Attorneys, CPAs, and Enrolled Agents.
Topics Covered
- Legislative history of the Cares Act and IRS action in response to the COVID-19 crisis
- Modified loan and repayment rules for employees requiring immediate cash
- Covid-19 related penalty waiver provisions for employees
- Plan changes for employers in response to decreased revenue or employee layoffs
- Employer use of Paycheck Protection Program funds for retirement plans
- Waiver of required minimum distributions from 403(b) and IRA accounts
- Recommendations for employees both positively and negatively impacted by congressional action
Learning Objectives
- Describe the efforts by Congress and the IRS in response to the COVID-19
- Recognize and analyze the options available to employees to use retirement funds for current liquidity needs
- Recognize recommended plan changes to employers based on shrinking revenue and employee reductions
- Identify the impact on employees and employers using government funds to contribute to retirement plans
Level
Update
Instructional Method
Self-Study
NASBA Field of Study
Taxes (2 hours)
Program Prerequisites
Basic understanding of retirement plans.
Advance Preparation
None
Instructor
Klaralee R. Charlton
Klaralee Charlton is a Partner at 3i Law in Denver, Colorado. She practices fiduciary tax, estate administration, and business transactional law. As part of her practice, she guides clients through the process of administering a loved one’s estate including the collection, valuation, management and transfer of assets including financial accounts, real estate, and business interests with a focus on minimizing estate and income tax liability. Klaralee also works closely with trustees of ongoing trusts to ensure compliance and prepares clients’ fiduciary income tax returns annually.
Klaralee has written and lectured on topics including estate and gift tax, fiduciary income tax reporting and U.S. regulations governing the valuation of small family businesses. She is an active member of the Colorado Bar Association, Tax Section and Adjunct Profession at the University of Denver, Graduate Tax Program.
She earned her J.D. in 2011 from the University of Utah, S.J. Quinney College of Law, her LL.M. in Tax Law from the University of Denver in 2013, and her B.A. in political science in 2009 from Bryn Mawr College. She is admitted to practice in both Colorado and Montana.