I am very confused with the Covid-19 Care withdraw portion within the 401k. I think this is what I grasp... correct me if I am wrong please.
Withdraw "X". No penalties , aka no 10% early withdraw fee. You only pay federal withholding fee from what I gather. The only other potential fee you may end up paying is IF, IF you end up being pushed into a higher tax bracket when you claim this on your income for next year. If that part is correct, the tax brackets are fairly large if I am not mistaken and would need to be massive for it to actually matter? Can anyone give input in plain english that Id be able to understand. Please and thank you.
