The CARES Act was passed last year in response to the COVID-19 pandemic, and the bill included a number of temporary changes and exceptions to the tax laws regarding retirement and education accounts. 

For example, the CARES Act waived the early withdrawal penalty for withdrawals from tax-deferred retirement accounts — but if the money isn’t paid back into the account within three years it will be considered taxable income, spread out over three years and starting with your 2020 return. 

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