QUESTION:
My question is regarding taking money out of my solo 401k or IRA.
I now need money to live on having been laid off. Do I have until end of December 2020 to take money out ?? I wasn’t thinking of taking a loan as don’t think I will be able to pay this back but you never know I assume I have three years to decide on paying it back or paying the taxes on the money?
ANSWER:
If you qualify to take a CARES ACT Distribution from your solo 401k plan or IRA in 2020, the deadline to take it is 12/31/2020.
You have three years and a day to re-contribute the amount of the CARES Act distribution in order to avoid the taxes (in which case you could file an amended return to claim a refund for taxes paid prior to the re-contribution).
See More HERE, at the following: https://www.irs.gov/newsroom/coronavirus-relief-for-retirement-plans-and-iras#:~:text=The%20CARES%20Act%20waives%20required,your%20first%20RMD%20in%202020.
My question is regarding taking money out of my solo 401k or IRA.
I now need money to live on having been laid off. Do I have until end of December 2020 to take money out ?? I wasn’t thinking of taking a loan as don’t think I will be able to pay this back but you never know I assume I have three years to decide on paying it back or paying the taxes on the money?
ANSWER:
If you qualify to take a CARES ACT Distribution from your solo 401k plan or IRA in 2020, the deadline to take it is 12/31/2020.
You have three years and a day to re-contribute the amount of the CARES Act distribution in order to avoid the taxes (in which case you could file an amended return to claim a refund for taxes paid prior to the re-contribution).
See More HERE, at the following: https://www.irs.gov/newsroom/coronavirus-relief-for-retirement-plans-and-iras#:~:text=The%20CARES%20Act%20waives%20required,your%20first%20RMD%20in%202020.
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