Looking to Take Out a Larger 401(k) Loan? You Have Less Than 2 Weeks to Do It

Millions of Americans are struggling in the wake of the COVID-19 crisis, and if you're having a hard time making ends meet, you may be thinking of turning to your retirement savings for help. Normally, distributions taken from an IRA or 401(k) prior to age 59 1/2 are subject to a 10% early withdrawal penalty, but thanks to the CARES Act, which was passed in late March, you can now withdraw up to $100,000 from retirement savings penalty-free, provided you've been impacted financially or healthwise by the pandemic.

But taking a withdrawal from your long-term savings isn't your only option -- you can also borrow money from your retirement plan. Though IRAs don't offer loans, 401(k) plans generally do. And thanks to the CARES Act, you now have an opportunity to borrow more than usual.

Image source: Getty Images.

Continue reading

Source Fool.com