08/01/2020
Great News you can use:
In response to the coronavirus, the federal government, through the CARES Act, has included the ability for people under age 59 1/2 to withdraw an amount from their 401K, 403B, IRA, or 457B plans sponsored by their employers, up to $100,000 without the penalty.
Additionally, any or all of this $100,000 maximum withdrawal can be recontributed to any IRA using revised Form 8915-E, for a period of up to three years.
A coronavirus Related distribution can be taken if anyone in your household "experiences adverse financial consequences as a result of:
^ the individual being quarantined, being furloughed or laid-off, or having work hours reduced due to Covid-19;
^the individual being unable to work due to lack of childcare due to Covid-19; or
^closing or reducing hours of a business owned or operated by the individual due to Covid-19."
So, in a nutshell, you can take up to $100,000- without a penalty if you are under age 59 1/2- from your work sponsored 401K type retirement plan if you or anyone in your household has suffered economic hardship from the coronavirus, AND- you can put the money you take out, up to the full $100,000 back into a rollover IRA or the original plan with a three year deadline from the date of the withdrawal.
This is a great opportunity to access up to $100,000 of your retirement plan, potentially without tax liability, and roll it over into a new IRA without the limitations of your employer sponsored plan. Several Index products are available with no fees and a zero percent floor- which means you can never lose your principle or gains to to market fluctuations- to utilize including the S and P 500, Barclay's Atlas 5, and S and P Economic Cycle Factor Rotator Index.
Please call 219.712.0488 for more information.
Read the entire document here-https://www.irs.gov/pub/irs-drop/n-20-50.pdf
