Can I withdraw 90% of my 401k funds (I'm under 59 years of age) under the new stimulus bill that was signed in December 2020? Even though the CARES act expired, according to this article https://www.jdsupra.com/legalnews/new-stimulus-deal-overview-of-major-90043/ it says: Similar to the CRD provisions under the CARES Act, qualified disaster distributions:
- Are not subject to the 10% early distribution excise tax under Section 72(t) of the Internal Revenue Code;
- Will not be treated as violating any distribution restriction under the tax-qualified retirement plan or IRS;
- May be repaid to a tax-qualified retirement plan or IRA by the participant within three years, and such repayment will be treated as a tax-free rollover;
- Will result in income spread over three years, unless elected otherwise by the participant (and unless recontributed and rolled over); and
- Will not be treated as eligible rollover contributions for purposes of mandatory income tax withholding and notice requirements.
