IRS Releases Frequently Asked Questions (FAQ) Pertaining to Notice 2020-18 Clarifying Rules for Excess Deferrals and IRA/HSA Contributions

IRS Releases Frequently Asked Questions (FAQ) Pertaining to Notice 2020-18 Clarifying Rules for Excess Deferrals and IRA/HSA Contributions

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On March 24, 2020, the IRS released frequently asked questions (FAQ) pertaining to Notice 2020-18, which extends Tax Day to July 15, 2020. One of the items we mentioned in our March 22, 2020 Email correspondence was clarified and not the result we anticipated. 

Excess elective deferrals in 2019 to a workplace-based retirement plan must be withdrawn from the plan no later than April 15, 2020, in order to exclude the distributions from income.  This date was not extended as a result of the Notice 2020-18 tax relief.

The IRS has confirmed that 2019 contributions to IRA and HSA accounts will be extended to July 15, 2020 as a result of the Notice 2020-18 tax relief.

The FAQ website is a good resource for specific questions you may have can be found here:

https://www.irs.gov/newsroom/filing-and-payment-deadlines-questions-and-answers