The Coronavirus Aid, Relief, and Economic Security (CARES) Act made it easier for those hit hard by coronavirus to take distributions from qualified retirement accounts. In 2020, Americans who experienced “adverse financial consequences” due to the pandemic were allowed to withdraw up to $100,000 without having to pay a 10% early withdrawal penalty. Anyone who took a coronavirus-related distribution can repay all or part of it to an eligible retirement plan, provided that they complete the repayment within three years after the date when they received the distribution. Also, the distribution will be treated in such a way that no federal income tax will be owed on it.