Coronavirus Relief Sets Low Bar for Raiding Retirement Accounts

Retirement account holders impacted by the novel coronavirus can withdraw $100,000 with few restrictions thanks to the bipartisan relief package signed into law last week.

The new law scraps a 10% penalty for pre-retirement withdrawals on up to $100,000 this year from qualified plans such as 401(k)s to offset “adverse financial consequences” due to the virus, and allows for repayment of the funds within three years.

The extraordinary combination of tax breaks, nebulous criteria, and repayment options makes coronavirus withdrawals far more attractive than existing IRS exemptions, according to retirement professionals.

“Congress has created a whole new category of distribution ...