Financial Briefs

The new Coronavirus federal aid package, the CARES Act, expands options for distributions from IRAs and qualified retirement plans.

If you've been harmed by the pandemic , and need income right now, the early withdrawal penalty on those under age 59½ is waived.

The maximum amount you can withdraw penalty-free is $100,000, but you still will be required to pay income taxes on the withdrawal. Fortunately, you have the option to spread out those tax payments over the next three years. Alternatively, you have the option to report the entire withdrawal on your 2020 federal income tax return, which may aid individuals with large capital losses.