With no agreement on a second round of stimulus payments, the IRS made it easier for people to pull money from their retirement plans without a costly penalty.

Questions:

1. Who makes up the category of individuals who can tap their retirement plan without penalty, according to the IRS’s new guidance?
2. If an employer allows an employee to borrow from their retirement plan, what is the amount or limit without penalty?
3. What are the COVID situations covered under the Cares Act, regarding these loans?

Source:

Singletary, M. (2020) The IRS just made it easier to take out a loan or withdraw money from your retirement account. The Washington Post, June 23 (Retrievable online at https://www.washingtonpost.com/business/2020/06/23/irs-just-made-it-easier-take-out-loan-or-withdraw-money-your-retirement-account/)