Withdrawal penalty changes due to the coronavirus relief bill
If you, your spouse or dependent tested positive for COVID-19 or are undergoing financial hardships due to reduced hours, a layoff or self-quarantine, you may be eligible to withdraw up to $100,000 from your retirement account without incurring a 10% penalty.
But keep in mind your employer or plan sponsor has to opt in by agreeing to follow the CARES Act provisions. And many aren’t doing that.
Learn more about the Coronavirus Aid, Relief, and Economic Stimulus (CARES) Act and how it affects your savings with our guide.