Two Ways To Access Your Money Now!
Money is an issue for a lot of us during the Covid-19 crisis. Businesses are closed, people have suffered job losses or furloughs and that's making it tough to make ends meet.
If you’ve already gone through cost-cutting measures to tighten the belt, and while you might actually be saving money right now by not having to drive to work – friends have said they have saved $500 and more by not having to fill-up their tanks. That may not be enough and you need money Now.
Here are two good options that you may not know about to access cash you already have…In your 401K account.
I know you hoped to never touch that money in your 401K until retirement. But here’s some good news. As part of the Economic Stimulus Package – You can take a
Coronavirus Hardship Loan.
If you have been impacted by COVID-19 as in you’ve lost your job, lost income or even come down with the Coronavirus you may qualify for one-time hardship withdrawal up to $100,000. And there’s no mandatory withholding or no penalties. Of course Uncle Sam will want his cut, but the income realized can be divided and spread over the next 3 tax years.
401K Loan is another option. If you’re still working and contributing to your 401K, then you may qualify for a loan up to $100,000. Payments on this type of loan can be delayed for one year thanks to the Economic Stimulus Package. Normally you’ll have 5 years to pay back that loan. And only one caution if you’re under 59.5 years of age and don’t pay back to loan – you’ll be subject to penalties.
Hope this helps and check with your 401K plan to see what's best for your situation.