Separation, COVID-19, and Withdrawing Money from Your Retirement Plan
People all over the United States are suffering from the long-term effects of the COVID-19 pandemic – emotionally, physically, and especially financially. The CARES Act § 2202 has authorized special distribution options for retirement plans and has expanded loans from certain retirement plans. Under the CARES Act, the IRS will not deduct the 10% additional tax from early distribution of a retirement account for individuals directly affected by COVID-19. The explanation of the benefits of this specific section of the CARES Act is outside the subject of this blog. What happens if you are affected by COVID, you and your spouse are separated, and you withdraw money from your retirement under this program? Continue reading →