I am considering taking out about $50k in 401k due to the fact that I lost my job in May. Now I did get a job shortly thereafter, but I am the only one that works, as my wife is a stay-at-home Mom, and while the salary is nice, we depend on commissions as well. Since leaving one job affected by Covid and starting the new one, commissions have been fewer and far between. The salary isn’t enough to cover the bills and wanting to pay off a few credit cards to lower the monthly bills. The two 401k’s I am looking to take from are past companies I had worked for. Neither took the Cares Act money and Voya is telling me that if they didn’t take the money then I won’t be eligible to get the 10% penalty waived. Is there any way as an individual affected by the pandemic that I can have the 10% fee waived when it comes tax time in 2021?
