Emergency Funds in the Wake of the Coronavirus
Tax Notes State, Vol. 96, No. 1, pp. 65-66, April 6, 2020
4 Pages Posted: 4 Jun 2020 Last revised: 30 Jul 2020
Date Written: April 6, 2020
The CARES Act targeting the economic effects of the COVID-19 pandemic allows taxpayers to withdraw up to $100,000 from their retirement savings, such as section 401(k) plans, without the typical 10% penalty for early withdrawal. However, retirement accounts do not make for ideal emergency funds. This Article therefore advocates that future legislation should incentivize separate savings funds.
Keywords: COVID-19, coronavirus, pandemic, CARES Act, savings, retirement
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