Reminder For CARES Act 401k & IRA Withdrawals

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The CARES Act allowed for penalty free withdrawals from 401k’s and IRA’s. If you have taken a premature withdrawal and are able, consider putting the money back in as soon as possible. This will allow you to avoid paying income tax on the withdrawal; and get the money earning and compounding tax free again. Those are the primary reasons you have the plans, so don’t forget to continue to maximize the plan benefits.

Much more information is here: https://www.fool.com/retirement/2020/12/04/took-a-cares-act-retirement-plan-withdrawal-heres/

Also be sure to consult your plan administrator for detailed documentation and follow the proper process.

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