SEC Issues Alert Re: COVID-19 Early Distribution from Retirement Accounts

The Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 provide temporary support related to distributions from IRAs as well as qualified plans including solo 401k plans

Qualified individuals may take up to a $100,000 distribution (in aggregate) from their qualified retirement plans if they meet a CRD exception as outlined here.  The CARES Act also doubles these retirement plan loan limits for qualified individuals eligible for a CRD to the lesser of $100,000 or 100 percent of the participant’s vested account balance. Visit here to learn more. 

Items Discussed in the June 2, 2020 Securities and Exchange Commission (SEC) Investor Alert

Unfortunately, unscrupulous promoters have used these CARES Act benefits to encourage investors to take money from their 401(k)s or traditional IRAs, not for current emergency financial needs, but to buy investments (often riskier ones) in an account at a firm the promoter recommends or in the investor’s existing account.”

“Unfortunately, fraudsters and other bad actors are using these CARES Act benefits, which are intended for those facing economic hardship from COVID-19, to promote high-risk, high-fee investments and other inappropriate products and strategies. “

To view the full SEC alert, click here.

About Mark Nolan

Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations. Learn more about Mark Nolan and My Solo 401k Financial >>

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