I think you are wrong about that. I need an expert to chime in here, please. I thought I could only withdrawal money w/o penalty, if I was laid-off or furloughed. Neither of those apply to me.
From the IRS website - https://www.irs.gov/newsroom/coronavirus-related-relief-for-retirement-plans-and-iras-questions-and-answers
You are a qualified individual if any of these situations apply to you:
You are diagnosed with the virus SARS-CoV-2 or with coronavirus disease 2019 (COVID-19) by a test approved by the Centers for Disease Control and Prevention;
Your spouse or dependent is diagnosed with SARS-CoV-2 or with COVID-19 by a test approved by the Centers for Disease Control and Prevention;
You experience adverse financial consequences as a result of being quarantined, being furloughed or laid off, or having work hours reduced due to SARS-CoV-2 or COVID-19;
You experience adverse financial consequences as a result of being unable to work due to lack of child care due to SARS-CoV-2 or COVID-19; or
You experience adverse financial consequences as a result of closing or reducing hours of a business that you own or operate due to SARS-CoV-2 or COVID-19.
If none of those situations apply in your circumstances then you are not a qualified individual and the CARES act does not apply to you.
An early withdrawal from a 401(k) will incur a 10% penalty on your 2020 federal tax return.
Also see this IRS Notice 2020-50 - Guidance for Coronavirus-Related Distributions and Loans from Retirement Plans Under the CARES Act - https://www.irs.gov/pub/irs-drop/n-20-50.pdf
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