The Reason COVID-19 Might Destroy 22% of Workers' Retirement
Ever since U.S. cases of COVID-19 started multiplying back in March, the economy has been in shambles. Millions of workers have lost their jobs, while countless small businesses have closed their doors, perhaps forever.
With so many people desperate for money, it's clear that a relief package was necessary, and so in March, lawmakers passed the CARES Act. Perhaps the most popular feature of the CARES Act was the $1,200 stimulus payment it produced, but another notable feature is the option to withdraw from a 401(k) or IRA without penalty if you've been impacted by the pandemic. Normally, withdrawing funds from a 401(k) or IRA prior to age 59 1/2 results in a 10% penalty on the sum that's removed, but under the CARES Act, that penalty is waived provided you can prove you've been hurt by COVID-19 and your withdrawal is limited to $100,000.
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Source Fool.com
