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Income Investing
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Re: stimulus passes senate IMO they should pass a law that suspends the penalty for early withdraw from IRAs for workers < 59 1/2, and also to allow them to take money from their 401(k)'s or equivalents w/o calling it a loan that must be repaid.................................. =========================== Acttually the CARES act addresses that - Mirroring similar relief that has been provided to individuals in Federally declared disaster areas in the past (for things like hurricanes, wildfires, and floods), the CARES Act creates Coronavirus-Related Distributions. Coronavirus-Related Distributions are distributions of up to $100,000, made from IRAs, employer-sponsored retirement plans, or a combination both, which are made in 2020 by an individual who has been impacted by the Coronavirus because they: • Have been diagnosed with COVID-19; • Have a spouse or dependent who has been diagnosed with COVID-19; • Experience adverse financial consequences as a result of being quarantined, furloughed, being laid off, or having work hours reduced because of the disease; • Are unable to work because they lack childcare as a result of the disease; • Own a business that has closed or operate under reduced hours because of the disease; or • Meet some other reason that the IRS decides to say is OK. ==================================== They've waived the early withdrawal penalty (but taxes are still due); the income can be spread over 3 years to lessen the tax impact and/or can be repaid |
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