dmertz
Level 15

Retirement tax questions

For qualified coronavirus-related distributions, the CARES Act also waives the 20% mandatory withholding normally required on distributions from qualified retirement plans like a 401(k) that are otherwise subject to 20% mandatory withholding.  Of course if you decline the withholding, you'll have a larger balance due when you file your 2020 tax return which might result in tax underpayment penalties.