Comparing 401k CARES Act Withdrawals to Regular 401k Withdrawals: Is Taking a 401k Withdrawal Right for You?
401k CARES Act withdrawal limits have been updated in response to the CARES Act recently signed into law updating 401k withdrawal limits. CARES Act 2020 401k Withdrawal Updates - Effective March 27, 2020, you can take a 401k CARES Act withdrawal of up to the lesser of $100,000 or 100% of your vested 401(k) Plan account balance. You also have the ability to take a hardship withdrawal from the 401(k) plan that is exempt from the normal 10% early withdrawal penalty and repayable within three years. Some of the Pros of taking 401k loans and hardship withdrawals include: Instant capital can be received from your 401k retirement account with very minimal effort. Most 401k plans offer online 401k hardship withdrawals that can get you money within a matter of a few days with no credit checks, impacts to your credit, or a lengthy application process. Another benefit of the 401k CARES Act withdrawal is the fact that the money can be used for anything, although it is highly suggest