IRS expands criteria to withdraw money from retirement plans for those affected by coronavirus
Tax Day is NOT April 15 this year. The federal filing deadline was pushed to July 15, but may differ based on the state your taxes are filed in. USA TODAY
More Americans are eligible to withdraw money from their retirement plans if they have been affected by The Internal Revenue Service announced Friday that it has expanded eligibility to "take into account additional factors such as reductions in pay, rescissions of job offers, and delayed start dates."
The updated criteria, part of the CARES Act, also allows spouses or household members to take these distributions if someone in the 真人百家家乐官网网站home was affected.
The Money tips and advice delivered right to your inbox. Sign up here
The act allows investors of any age to withdraw as much as $100,000 from retirement accounts including 401(k) plans and individual retirement accounts this year without paying an early withdrawal penalty of 10%.
National coin shortage: Pennies, nickels, dimes and quarters part of latest COVID-19 shortage
They can avoid taxes on the withdrawal if the money is put back in the account within three years. If it isn't returned, taxes can be paid over a three-year span.
Experts typically advise against taking money out of retirement accounts, but the fallout from the crisis has left many people scrambling to pay their bills after being laid off or furloughed.
The IRS clarified in Friday's announcement that employers can choose whether to implement "these coronavirus-related distribution and loan rules" but says "qualified individuals can claim the tax benefits of coronavirus-related distribution rules even if plan provisions aren't changed."
More brands rethink racial images: @KellyTyko