Contracted COVID-19 Borrow $100K From Your 401(k) Via the CARES Act

 

This pandemic has brought out an aggressively paranoid hypochondriac in me.

Several weeks ago, I woke up horribly nauseous.

The room began spinning. I was mentally dizzy. My vision was spinning.

I was as weak as a newborn faun. Getting out of bed and walking to the bathroom, a journey of several steps, might as well have been a universe spanning endeavor.

For about 5 hours I was as sick as a dog and terrified I had contracted COVID-19.

I live alone. As a telecommuting writer, I wondered how I would work.

People who die of COVID-19 die alone.

I’m thinking now that I contracted simple food poisoning. (And its sad I was thrilled that may have been the cause of my sudden illness).

I’m already quarantined and have been ever since. I was fine within 5 hours, but I think I need to get tested.

Hell, who doesn’t?

And, most of the COVID-19 tests on the market aren’t very reliable since this virus only first appeared several months ago.

The CDC recently announced that half of the COVID-19 antibody tests on the market reveal incorrect results 50% of the time.

I, like many other people, can’t afford to get sick.

I can’t afford to pay for care and going to the hospital isn’t a high priority for me now.

However, if you or someone you know has survived COVID-19 and own a 401(k), you may be able to borrow as much as $100,000.

CARES Act Tax-Deferred Retirement Plan Withdrawal Provision

The CARES Act was signed in law by congress and President Donald Trump in March 2020.

Along with sending $1,200 in emergency cash to qualified individuals, the CARES Act also offers emergency loan funding and repayment forbearance options.

If you have a retirement fund like a 401(k), you can borrow up to $100,000 if you’ve been adversely affected by COVID-19.

Usually, the loan maximum amount is limited to $50,000, but has been doubled under the auspices of the CARES Act.

To qualify, you or a direct family member would have to have been recently infected by COVID-19. Or, you must prove you’ve been economically devastated by the pandemic. Consult your retirement administrator.

If you’ve been personally affected by the coronavirus, the 10% withdrawal penalty by people under age 59 ½ is automatically waived.

Any applicable taxes can be spread out over 3 years.

Also, depending on your personal circumstances, repayments terms for the loan can be extended as well.

No two situations are alike, so consult the retirement fund administrator of your job for more information.

I don’t have this option, but I wish I did.

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