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.