In letters to the U.S. Treasury Secretary and IRS Commissioner, the chief executive officer of the nation’s second largest retirement services provider proposed relief measures to help Americans deal with hardships brought on by the global outbreak of the corona virus known as COVID-19.
The proposed measures include:
- waiving the 10% penalty on withdrawals from retirement accounts by taxpayers under age 59 ½, and
- allowing people to repay those early retirement withdrawals within three years.
Read more about the proposed measures — and my brief comments about them — in this report from Staff Writer Joe Rubino in The Denver Post’s March 20, 2020, edition.
As I indicated, pulling money from retirement accounts should be a last resort. Those funds are intended for retirement, and the tax-deferred growth potential is powerful. However, for investors without other options, we can hope the relief proposed is approved.