By Erin F. Nielson with contribution from Katie Moore, Financial Advisor and Certified Divorce Financial Analyst with Finivi
Many of our clients are experiencing financial hardship as a result of the many changes to our work and home lives caused by the Coronavirus. The lawyers at Wilchins Cosentino and Novins can help you understand your divorce related financial obligations, and how to handle them in light of financial difficulties you may be experiencing.
One option to consider is whether you should take an early withdrawal from your retirement assets.
Whether you have been laid off, furloughed, lost work hours, or simply can’t work because you have to care for children home from school/day care, the CARES Act (Coronavirus Aid, Relief and Economic Security Act) has expanded your ability to access your retirement funds now by:
- Eliminating the 10% penalty on early withdrawals;
- Minimizing the tax liability associated with taking an early withdrawal by allowing participants three years in which to replace the withdrawn funds before taxes must be paid on the withdrawal, and;
- Increasing the amount you can borrow from your participating retirement
Our colleague Katie Moore shared this ebook with all the details about who qualifies to take advantage of these benefits, and how to exercise your options.
The decision to withdraw funds from your retirement accounts is one that can have a large impact on your future financial goals and well-being. It is important to discuss your options with someone who can help you weigh the short term benefits versus the long term costs.
Katie Moore is a Financial Advisor and a Certified Divorce Financial Analyst with Finivi. She can be reached for further questions here