Consequences of Withdrawing From Your Retirement Accounts Because of COVID-19
In this episode, Luis talks about the consequences of taking a qualified coronavirus distribution from a retirement account and ways to navigate the taxes and other consequences.
Luis came to the U.S. at age 11 from the Dominican Republic. Growing up in New York City, he noticed the lack of financial literacy in his community and was inspired by his parents to work hard and pursue an education. He founded Build a Better Financial Future LLC and is the host of the On My Way to Wealth podcast. Luis was named one of InvestmentNews 40 Under 40 in 2019 and Financial Advisor Magazine’s 10 Young Advisors to Watch. From participating as an FPA NexGen Ambassador, to speaking at the CFP Board’s Diversity Summit, Luis uses his platform to help spread financial literacy as well as encourage younger and diverse planners to join and thrive in the industry.
In this episode, you’ll learn about the following:
- The new rules under the CARES Act regarding qualified retirement account distributions
- Who is eligible for a coronavirus qualified retirement distribution
- The difference between a 401K loan and a 401k withdrawal
- Short term and long term consequences of taking money out of your retirement account and how to navigate them