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:
- Who makes up the category of individuals who can tap their retirement plan without penalty, according to the IRS’s new guidance?
- If an employer allows an employee to borrow from their retirement plan, what is the amount or limit without penalty?
- 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/)
