Emergency Funds in the Wake of the Coronavirus

Tax Notes State, Vol. 96, No. 1, pp. 65-66, April 6, 2020

Indiana University Robert H. McKinney School of Law Research Paper No. 2020-4

4 Pages Posted: 4 Jun 2020 Last revised: 30 Jul 2020

See all articles by Margaret Ryznar

Margaret Ryznar

Indiana University Robert H. McKinney School of Law; affiliation not provided to SSRN

Date Written: April 6, 2020

Abstract

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

Suggested Citation

Ryznar, Margaret and Ryznar, Margaret, Emergency Funds in the Wake of the Coronavirus (April 6, 2020). Tax Notes State, Vol. 96, No. 1, pp. 65-66, April 6, 2020, Indiana University Robert H. McKinney School of Law Research Paper No. 2020-4, Available at SSRN: https://ssrn.com/abstract=3590020

Margaret Ryznar (Contact Author)

affiliation not provided to SSRN

Indiana University Robert H. McKinney School of Law ( email )

530 West New York Street
Indianapolis, IN 46202
United States

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