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CARES and your retirement accounts

Hardship Distribution from IRA

Normally, hardship distributions are subject to a 10% tax penalty for early withdrawal. The CARES Act makes it cheaper to make a new type of withdrawal, called a coronavirus-related distribution. The law allows individuals affected by COVID-19 to make a withdraw up to $100,000 without paying penalties. You must pay the income taxes owed on these amounts within three years.

401(k) Loans

Participants are now eligible to receive 100% of their vested balance or $100,000, whichever is less (the plan must permit these changes).

Required Minimum Distributions

You can skip for 2020. NO RMDs.

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