Can a husband and wife who each have their own 401ks withdraw 100k each (200k total) early without the 10 percent penalty under the Cares Act (Covid 19) if they qualify?
Can a husband and wife who each have their own 401ks withdraw 100k each (200k total) early without the 10 percent penalty under the Cares Act (Covid 19) if they qualify?
I see no restrictions for each spouse to take a withdrawal from their own accounts as long as each of them meets the qualifications to be able to withdraw without the penalty. See the IRS news release:
Can a husband and wife who each have their own 401ks withdraw 100k each (200k total) early without the 10 percent penalty under the Cares Act (Covid 19) if they qualify?
But you will still owe the tax on it. And it might push you into a higher tax bracket. Be careful.
Can a husband and wife who each have their own 401ks withdraw 100k each (200k total) early without the 10 percent penalty under the Cares Act (Covid 19) if they qualify?
You can report the distribution spread over 3 years to lessen the tax impact but it would still be a big hit on each tax return.
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