The stimulus package has also suspended certain retirement account rules for the calendar year 2020. No one will have to take a required minimum distribution from individual retirement accounts or workplace retirement savings plans.
If you have an IRA or workplace retirement plan, you can withdraw up to $100,000 without the usual 10 percent penalty as long as the withdrawal is because of the COVID-19 outbreak. The withdrawal qualifies if you, a spouse or dependent tested positive for the virus or you experienced other negative economic effects related to the pandemic. You’ll also be able to spread out any income taxes you owe as a result over a three-year time period from the date of the distribution.
You can also borrow from your 401(k) and can take out twice the usual amount. For 180 days after the bill passes, if you provide certification that you’ve been affected by the COVID-19 pandemic, you can withdraw up to $100,000. If you already have a loan and it’s supposed to be repaid before Dec. 31, you get an extra year.
We’re facing unprecedented times; the pandemic has touched everyone’s lives in some way. Please know Park City Credit Union is here for you during this time. If you’re experiencing financial hardship due to the Coronavirus pandemic, reach out and talk to us. Let us help you find the option that works best for you. We can get through this together; one step at a time.