Answers to important questions you may have about the CARES Act and your Investments
Can I take money from my IRA to cope with the economic slowdown?
Yes. The CARES Act waives the 10% early withdrawal penalty. You can withdraw up to $100,000 from your IRA and not be penalized. You You will still owe income tax at your ordinary income tax bracket on the amount you withdraw. Conditions for withdraw without penalty: This provision is for people who have been affected by the COVID-19. Either you’ve gotten sick, or your spouse has, or one of you has lost your job, or your business has been impacted. This will apply to pretty much everyone, to varying degrees. Save documentation so you can verify the use of the funds withdrawn.