NEED CASH BECAUSE OF COVID-19? YOU CAN TAP YOUR RETIREMENT FUND FTR TAX TIP OF THE MONTH
RESTAURANT- STYLE FETTUCCINE ALFREDO
If you lost your job because of the coronavirus pandemic, you’re likely struggling to make ends meet right now. Maybe your mortgage payment is looming, or you’re having trouble paying off your car. If this sounds familiar and you’re looking for a way out, I just might have one for you. Here it is: The Coronavirus Aid, Relief, and Economic Security (CARES) Act allows qualifying savers to make emergency withdrawals of up to $100,000 from their 401(k)s and IRAs until Dec. 31, 2020. If you’re under 59 1/2 years old, you can access the money without the usual 10% early withdrawal penalty. You can also spread the income tax from the withdrawal over three years. However, you have the option of repaying the amount more quickly to avoid paying any tax at all. How do you qualify for these special circumstances? If you, your spouse, or anyone in your household contracted COVID-19, or if you or your spouse has lost a job, had your hours or salary cut, or had a job offer rescinded because of the pandemic, then you are eligible to take advantage of the special retirement withdrawal. Taking money from your retirement account is a difficult choice to make, but it could be necessary to get you through these unforeseen circumstances. These withdrawals will be reconciled on your next three years of tax returns (2020, 2021, and 2022). If you take $60,000 out of your retirement plan by the end of the year, for example, you have the option of reporting $20,000 for each of the three years and paying tax on that amount for those years. Or, if you’re able to pay the full amount back within the next three years, then you won’t owe any tax at all. Finally, if you report $20,000 of this income on the 2020 tax return and then you pay $20,000 back at the end of 2020, you’ll need to file an amended tax return to reconcile that repayment and decrease your income. If this sounds too complicated, never fear — I’m here to help you, your loved ones, and your friends through the IRS maze! The most important thing is that you have an option if you’re strapped for cash because of the pandemic. To talk through making the leap, give me a call today.
Inspired by The New York Times
INGREDIENTS
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Salt
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1 cup freshly grated Parmigiano- Reggiano Freshly ground pepper, to taste Fresh parsley, chopped, to taste
2 tbsp butter
1 clove of garlic, finely chopped
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1 1/2 cups heavy cream
1 large egg yolk
1 lemon wedge
1 lb fresh fettuccine
DIRECTIONS
1. In a large pot, bring 6 quarts of generously salted water to a boil. 2. In a large, deep skillet, while the water heats, melt butter over medium-high heat. Add garlic and sauté until fragrant and sizzling (about 2 minutes). 3. In a bowl, whisk heavy cream and egg yolk until blended and pour into garlic butter. 4. Reduce heat to medium-low. Stir until hot, not boiling. Keep warm on low heat. 5. In the large pot, cook pasta until al dente. (The pasta will float once it’s done.) Reserve about 1/2 cup pasta water and drain pasta. Pour hot pasta into cream mixture and toss to coat on low heat. 6. Add Parmigiano-Reggiano and keep tossing gently until cream is mostly absorbed. If the sauce is absorbed too much, toss with extra pasta water. Season with salt and pepper to taste. 7. Serve with parsley and a squeeze of lemon.
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