Saturday, May 21News That Matters

Tag: Covidrelated

Here’s guidance for handling taxes on Covid-related withdrawals from retirement accounts

MoMo Productions | DigitalVision | Getty ImagesThat early withdrawal from your retirement account last year may have been a life saver. Now, it's time to start paying the taxman.Most retirement savers did not take a distribution under legislation that authorized penalty-free early withdrawals amid the pandemic.However, for those who did, the majority (69%) say they either don't plan to replace any of the money they withdrew or are unable to do so, according to recent research from Principal Financial Group. Another 18% intend to repay part of their withdrawal, and 13% say they'll replace the full amount.Be aware that you're required to include at least a portion of any taxes owed on your 2020 return — which is due May 17. And depending on the tax form you received, extra steps may be requi...