Wednesday, January 20, 2021

Tag: Does the CARES Act Actually Care for Your 401(k)?

Does the CARES Act Actually Care for Your 401(k)?

from Birch Gold Group:

Lawmakers packaged, sold, and passed the CARES Act as a way to help retirement savers mitigate the COVID-19 crisis.

Buried in 880 pages worth of legislation, one section is intended to provide benefits for those retirement savers with a 401(k) plan. According to a piece on CNBC, one of those benefits allows you to withdraw cash without the normal penalties:

The first option lets you take up to $100,000 or 100% of your balance (whichever is less) without the typical early withdrawal penalty for participants under age 59½. You get three years to either pay the taxes due on the distribution or to replace the money and not owe taxes on it.