Hi,
I am under 59.5. My wife and I live overseas, in Montenegro, where pretty much everyone depends on tourism. My wife could not work as a property manager as planned due to collapse of tourism here over last year, and moreover, since local schools are now online here for children, my wife can't seek work outside the home, as she has to constantly manage our 12 year old's school work.
We had planned to buy a house (overseas), but not being able to save any money over past year has impacted that plan, and other plans that depended on an expectation of income (car purchase, etc). Having just read about this CARES act:
https://www.thetaxadviser.com/issues/2020/jul/tax-savings-opportunities-coronavirus-cares-act.html
it got me thinking, maybe I could withdraw earnings from my Roth IRA penalty free? If I understand the provision of the CARES act pertaining to retirement accounts, I could, say, withdraw $90K of earnings, then over period of 3 years return as much of that as I can, then pay taxes on the amount $90K minus what I return?
Does that mean over 3 years, I would not pay tax on the amount I withdrew, instead pay at the three year point? Or would I pay 33% each year on amount withdrawn, then receive credit back after 3 years based on the amount returned?
Just trying to understand the criteria, timing and mechanics of all this!
thanks
