Certain benefits under the CARES Act have expired. Here’s what you need to know for 2021.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) expired on December 31, 2020. Originally passed by Congress in March 2020, it offered some relief from the economic effects of COVID-19. The information below highlights key changes due to the expiration of the CARES Act that might affect you in 2021.
KEY CHANGES TO UNDERSTAND
- Required minimum distributions
- Coronavirus-related withdrawals
- Suspended loan repayments
Required Minimum Distributions
The CARES Act allowed individuals to cancel their required minimum distribution (RMD) payments in 2020. If you canceled your RMD for last year, your RMD will automatically restart for 2021. Please review your next transaction date after logging in for more details. If 2020 was your first year to take an RMD and you planned to take two RMDs in 2021, you are no longer required to do so.
The CARES Act allowed individuals to take a coronavirus-related withdrawal in 2020. View your withdrawal details after logging in and evaluate your tax liability. You can pay your tax liability in 2021, spread your tax payments over three years, or repay up to the full amount of your withdrawal to reduce your tax liability. We encourage you to consult with a tax professional to plan for your unique situation, or find more information on the IRS website.
Suspended Loan Repayments
The CARES Act allowed people to suspend loan payments in 2020. Your scheduled repayments automatically begin again in 2021. Please visit Manage Transactions after logging in for your next repayment date and revised transaction date.