Tapping Your IRA or 401(k) Plan to Weather the Coronavirus

By Coronavirus, Maine Taxes, Wills & Estate Planning, Tax

In March, U.S. lawmakers passed a coronavirus relief and stimulus package to help Americans weather the economic shutdown.  The package includes changes to retirement plan rules to make it easier for people to take early withdrawals and loans from retirement accounts and IRAs.

Allowing such early withdrawals and loans may be helpful in providing cash for living expenses and avoid the need to tap into credit cards or personal loans to pay bills.  However, the downside of tapping into retirement plan savings is that by so doing the taxpayer may have some long-term detrimental impacts on their retirement. Read More