Hi, my name is Anthony Price from Casey Neilon and today is April 6. We’re going to be doing a series of short video clips, to help you keep up to date on the actions that are being taken in Washington DC to help all of us financially through one of the most challenging times in our nation’s history. These clips will let you know what relief is out there to help you, your family, and your employer.
Recently the President signed into law the CARES Act a $2 trillion stimulus package.
One of the key benefits of this package is to take a Coronavirus-Related Distribution from your retirement plan. CRDs as they are known, are allowed to take up the smaller amount of $100,000 or 100% of your vested balance.
You’re eligible for a distribution if you, your spouse or a dependent has been diagnosed with the virus, or you have experienced an adverse financial condition due to being quarantined, laid off, furloughed or subject to a reduction in working hours or even if you are unable to work due to lack of childcare.
Coronavirus Related Distributions are exempt from the 10% early withdrawal penalty if you are under age 59 ½ and are included in income over a three-year period. You have the option to repay the CRD within three years and any amounts repaid are not included in taxable income.
Stay tuned for clips from my co-workers to help you learn about the other ways this stimulus package can help you.