By Susan Dziubinski
The experts weigh in.
The Coronavirus Aid, Relief and Economic Security (CARES) Act seeks to help workers, retirees, and businesses during the COVID-19-induced economic slowdown.
In addition to providing expanded unemployment benefits and direct cash payments to many, the plan also allows workers to tap into their retirement funds with fewer penalties and retirees to skip required minimum distributions in 2020.
To help investors adeptly navigate among these relief measures, we’re bringing together commentary from tax, retirement, and policy experts. Be sure to visit this page for updates.
Tax and retirement planning expert Ed Slott says investors should tread carefully among the potential provisions, from RMDs to hardship withdrawals and loans.
Jeff Levine discusses what’s changing and the pros and cons of 401(k) loans versus hardship withdrawals.
The CARES Act makes it easier to gain access to retirement accounts in a pinch, but they’re not likely to be your best source of emergency cash.
The new stimulus plan suspends required minimum distributions for 2020. Contributor Natalie Choate offers advice to early birds who’ve already taken RMDs for the year.
Stimulus bill includes provision that suspends required minimum distributions for retirement accounts.