Need additional financial support due to COVID-19? As a last resort, consider a CRD (Corona Virus Related Distribution) from your IRA or a loan from your Company Retirement Account (CRA).
You must be a qualified individual. Which means you must meet one of the following:
Diagnosed with the virus,
Your Spouse was diagnosed with it,
You have suffered financial consequences from the virus due to being unable to care for a child, closing of a business or reduced business hours, being furloughed or laid off.
A CRD allows up to $100,000 in penalty free (not tax free) distributions from your retirement account (a mute point for those over 59.5 years of age).
The tax can be paid over three years, 2020, 2021, 2022 or all in 2020, it is your call.
Your Company Retirement plan can offer loans up to $100,000 (if still employed with that company) with a loan repayment delayed for one year.