Is the Mandatory 20% withholding waived for CV 401k withdrawals
Can you please confirm that the mandatory 20% withholding is waived for $100k CV 401k withdrawals?
Thank you in advance.
Can you please confirm that the mandatory 20% withholding is waived for $100k CV 401k withdrawals?
Thank you in advance.
Permalink Submitted by Alan - IRA critic on Fri, 2020-04-03 16:11
Yes, this is in Sec 2202 of the CARES Act. When requesting a distribution, it should be stated that you qualify for a CV distribution and opt for no withholding (or a different %). Remember, these distributions are penalty free, but still taxable.