Should I take loan or distribution from my retirement plan as a source of funds?
Given the times we live in, there is no easy answer to this question. If you need the funds you’re your retirement plan for your required living expenses, and do not have additional non-debt related resources available, then you may be a candidate for either a loan or distribution from your retirement plan. Since there may not be a simple “one size fits all” solution to this question, it’s important to at least have good information upon which to base your decision. Consider first what we know about the retirement plan loan and distribution provisions of the CARES Act.
Loans from employer provided retirement plans under the CARES Act
Before you dip into your retirement savings, consider all other resources available to you, their costs (if any), and how long you think you might be affected by the current situation. Again, your decision is highly personal and should not be made in haste. The following some other factors as well that might affect you.
USAA believes the websites and resources used to gather this information are reliable; however, we cannot guarantee the accuracy or timeliness of the information.
The contents of this document are not intended to be, and are not, legal or tax advice. The applicable tax law is complex, the penalties for non-compliance are severe, and the applicable tax law of your state may differ from federal tax law. Therefore, you should consult your tax and legal advisers regarding your specific situation. USAA or its affiliates do not provide tax advice. Taxpayers should seek advice based upon their own particular circumstances from an independent tax advisor.
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