On March 27, 2020, in response to the COVID-19 global pandemic, Congress passed the Coronavirus, Aid, Relief, and Economic Security (CARES) Act.
The Act contains a few key provisions designed to assist retirement plan participants and IRA account holders who are struggling financially during these unprecedented times.
For a qualified individual, the CARES Act waives the Code Section 72(t) additional 10% penalty tax on early (pre-age 59½) withdrawals up to $100,000 from a retirement plan or IRA.
Provided by LPL Financial, here are some frequently asked questions regarding these key provisions.