CREVE COEUR, Mo. – Compass Retirement Solutions says the government’s stimulus package offers some advantages for Americans saving for retirement and those already retired. If you’re struggling with the fallout from the coronavirus it will be easier for a while to draw from your 401K or other retirement accounts.
“Now, you will actually be able to take out up to $100,000 without being penalized. You would not have to withhold the mandatory 20 percent tax distribution. They will actually give you three years to pay that back,” said Marvin Mitchell, President of Compass Retirement Solutions.
There’s help for older Americans caught between a falling stock market and low-interest rates. Mithcell says retirees ages 70 to 72 will not be forced to take the required minimum distribution from a retirement plan.
“You do not have to take the required minimum distribution this year. They’re giving us one-year relief. That could be a great thing because the market is down. The last thing you want to do is take money out of that account or be forced to take money out of that account when the market is down,” said Marvin Mitchell
The stimulus law is complex. It’s advised you check with a financial advisor, a tax specialist, or an accountant before making any big moves. But, the idea behind the new rule is to put money into people’s hands as fast as possible.