Corona stimulus and 401k ??

deezdad

deezdad

Well-Known Member
Joined
Mar 25, 2005
From what I understand as part of the $2.2 trillion cares act passed last month, the gov is allowing a penalty free distribution of your money up to $100k regardless of age.. you'd still pay tax but have 3 years to pay it.. question is anyone know what you need to qualify for the distribution? I see one of the criteria is reduced hours, so if say u normally work 50 hours per week, then 40 after Corona hit, would that count as "reduced hours"? Asking for a friend ..
 
Hasn't it always been you could withdraw without 10% penalty if it was for an approved emergency like health issue but like you said still have to pay tax. Not really answering your question but did read about some additions in your favor with the new 2.2 trillion bill. You may have to wait until tomorrow since all the old guys on here go to bed by 7 now. :LOL:
 
KC87 said:
Hasn't it always been you could withdraw without 10% penalty if it was for an approved emergency like health issue but like you said still have to pay tax. Not really answering your question but did read about some additions in your favor with the new 2.2 trillion bill. You may have to wait until tomorrow since all the old guys on here go to bed by 7 now. :LOL:
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No exception to 10% penalty under 59 1/2 if u took a distribution other than separation from service, meaning if your still with the same employer your 401k is with at 55 years old and stop working there. U could take a loan and not pay penalty but you'd have to pay back.
 
deezdad said:
No exception to 10% penalty under 59 1/2 if u took a distribution other than separation from service, meaning if your still with the same employer your 401k is with at 55 years old and stop working there. U could take a loan and not pay penalty but you'd have to pay back.
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I might of been think of an annuity.
 
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