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ASC Trust – Repayment of Cares Act 401(k) Distributions

Date: March 15, 2022

For our pre-merger CMI Members, that is those with retirement funds in the ASC Trust, who may have taken a CARES Act distribution from their (ASC) 401(k) account during the 2020 calendar year, we want to be sure you are aware there is still time to repay some (or all) of that distribution. If you are able to do so, not only will you replenish your retirement savings, that portion paid back is non-taxable and will reduce any potential income tax liability.

In order to take advantage of these potential tax savings, any repayment, whether in whole or in part, must be made within three (3) years of the day after your original distribution date. While AFA is not qualified to offer tax advice, if you are unable to repay the distribution you should be aware that the legislation which provided for the distribution from your retirement savings account also provides you with the ability to pay any taxes resulting from the distribution over a three-year period. You should contact a qualified income tax advisor for additional information on how those rules apply.

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