Coronavirus Relief – 401K No Penalty Withdrawal $100k- Should You Do It?

by | Jan 2, 2023 | 401k | 18 comments

Coronavirus Relief – 401K No Penalty Withdrawal 0k- Should You Do It?




#caresact #401k #coronavirusrelief #schoolofpersonalfinance #personalfinance #financialeducation #financialplanning #financialfreedom #fire #financialindependence #richmccormack

Should you take $100,000 out of your 401k, 403b, 457, IRA, Roth IRA, SEP IRA, Simple IRA?? The CARES Act opened up new penalty-free distribution options from these types of employer-sponsored plans. I give you all the details in this video along with some strategies that available as a result of the CARES ACT. Also, there are new enhanced loan limits within 401(k) plan that will allow plan participants to take loans up to the lesser of 100% of their vested balance or $100,0000 and defer payments on those loans for a year. Lots of good info!!

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To Becoming Great With Money,
Rich McCormack, CFP®
School of Personal Finance

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18 Comments

  1. School of Personal Finance

    Hopefully, you do not need to take a "Coronavirus Related Distribution" but if you do it is nice that the 10% penalty is waived. You taking advantage of this rule change?? What do you think…good idea or bad idea??

  2. L L

    Is the withdrawal penalty waiver being extended into 2021 ?

    If I am concerned about not meeting the qualifications, can I just roll over into another account, and then withdraw from there ?

  3. Bryan Batelli

    Can I take the 100,000 and reinvest in stocks to make income off money I would otherwise not be able to touch?

  4. Rose Gold_7

    This was very well explained and very clear, thank you

  5. jvaldez5

    It’s funny they forget to mention if your present self isn’t doing too well it can negatively affect your future self as well.

  6. Gustavo Vega

    Great info my daughters 403b has high expenses .Planning to withdraw it and invest in a Fidelity total stock fund Zero expense

  7. Brian Tep

    do you actually get a check for $100, 000 ?

  8. Nancy Franger

    I am receiving UI benefits, these benefits do not cover all expenses. Would an early withdrawal from my IRA to get bills up to date jeopardize mu UI payments?

  9. Jul He

    Great video, if my anual salary is 200k and I’ll take 100k from my 401k I’ll pay taxes from the 300k or I’ll pay separate 20% on the 100k?

  10. BOj iam

    I’m from California, married 22% tax bracket,
    I’m planning to do a $99,000 401k CRD withdrawal and pay federal taxes in 3 years, my AGI is $100k.
    That means for 3 years my AGI will be $133k/year?
    Will I also pay CA state tax for $99k for 3 years?
    Or will I pay a 1-time CA state tax upon withdrawal of $99k for the tax year 2020?
    Thank you.

  11. The Shifting Investor

    Great details that other YouTubers and articles don't mention.

  12. George Camarillo

    Im happy I subscribed to your helpful information, but I have a rather long question. I’ve never subscribed to a site on YouTube before so is there another way to ask you a question without the public knowing all my business?

  13. Jose Alex

    Great video. So I took out about 80k I qualified for corona relief and had taxes withheld ended up with a 72k check. Will I owe additional taxes at the end of the year? Thanks!

  14. ed rod

    Thank you for the help. What’s type of verification required?

  15. Alex Carlos

    Hello sir!
    Would it be wise to take advantage of the Cares Act and pull money out of 401k to purchase another home for investment?

    Thank you

  16. Travis Reilly

    I think you can take a CRD withdrawal from a 401k and roll it over into an IRA. It says you have to put it into a qualified account. It doesn’t say you have to put it back into the same account. Please advise.

    Also, do you need to have proof that you need all of the funds you withdraw?

    Thanks

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