https://finance.yahoo.com/news/retirement-rule-changes-2020-know-145135777.html
Congress made retirement funds more accessible by waiving the 10% penalty and by not requiring tax withholding (which normally applies) on up to $100,000 of withdrawals made in 2020. These rules apply to people meeting any of several coronavirus medical or economic hardships including diagnosis of the disease, a layoff, a reduction in work hours, a business closure or inability to work because of difficulty in finding child care.
In addition to the penalty waiver, anyone making such withdrawals may treat them as having been taken over three years, to ease the tax bite, and people have the option of rolling some or all the money back into retirement accounts to avoid any taxes due.
These liberalized withdrawal rules are available for 401(k)-style accounts if employers adopt the changes. About half of respondent companies now allow them, according to a recent survey from the Plan Sponsor Council of America. Employers that have adopted the rules report that few workers so far have pulled out money.
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