Fun Fact of the Day, April 24, 2020

April 24, 2020

ACCESSING YOUR OWN MONEY - The CARES Act contains a provision that allows a taxpayer who has been negatively impacted by COVID-19 (e.g., infected by the virus, or loss of a job) to access up to $100,000 of funds during 2020 from a pre-tax retirement account before his/her age 59 ½ and not be subject to a 10% early withdrawal penalty.  All funds withdrawn would be subject to ordinary income taxation, but the tax bill may be spread out over 3 years (2020-2022) and the amount withdrawn may be returned to the retirement account to avoid taxation.  Please consult a tax advisor for details (source: CARES Act).  Reprinted with permission from BTN.

 

 

 

 

 

 

 

 

 

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