Not looking for a discussion as to whether any of this is a good idea, but I would like to know if anyone knows for sure whether the retirement account withdraw provisions of the CARES Act will allow for a withdraw from an individual's account if the household income is affected by job loss or wage reduction of that individual's spouse.

That would certainly be consistent with the purpose of the relief provisions, but the way politicians and bureaucrats do things sometimes astounds me.

-Rob

Google is your friend. "cares act retirement account withdrawal"

Forbes article

MarketWatch article

Been looking at this myself....

quote:

Originally posted by motorheadjohn:
Google is your friend. "cares act retirement account withdrawal"

Forbes article

MarketWatch article

Been looking at this myself....

Thanks. Doesn't exactly answer the question, though. I know what the summaries all say. In this case, Mrs.BurtonRW's hours have been slashed by 50%, but I'm the one with the funds sitting in a 403(b). She hasn't been diagnosed with COVID-19, but my individual income hasn't taken a hit.

I'm going to give it a shot and see what happens. Just wondered what I could expect.

-Rob

Mrs Mike was talking about this last night. Seems about a thousand employees took money out of their 401ks and she wants them to know they will have to pay it back w/I 3years or be subject to taxes and fines.....

She said it was at one center where maybe the HR people were promoting it as an option. But when she found out it was in central fla, she noted that maybe a lot of spouses were out of work due to tourism being shut down and this was how they were making payments.

None of their other centers have had employees dip into the retirement plan.

Were I the op, I would talk to HR and see if the same thing will affect your 401. It may be treated like a loan from yours and you will have to pay it back or pay taxes or even fines for removal

I need to know that too. Thanks for posting. I also need advice from CPA on retirement account management fees. Help needed with that. Feel I am being taken for a ride.

Was told it was penalty free if paid back within three years.

You could also do a loan and pay yourself back with interest over a longer period, no tax penalty

quote:

Originally posted by BigSwede:
Was told it was penalty free if paid back within three years.

My understanding was that the penalty is waived, period. The three year pay-back is to avoid paying income taxes on the money, OR you can spread the income taxes out over three years.

Also, it's my understanding that you can put it all back in a Roth IRA. Gotta confirm that, but it would work out well for me if that's the case.

-Rob