Hardship 401(k) Withdrawal Penalties Waived in U.S. Relief Bill

Retirement account holders affected by the new coronavirus wouldn’t owe 10% penalties for early emergency withdrawals and could take up to $100,000 out of their 401(k)s under a proposed U.S. stimulus package.

Those are among a handful of tax changes for qualified retirement accounts included in the sprawling spending package negotiated by senators and White House staff, according to summaries circulated by the Senate Finance Committee and the Health, Education, Labor and Pensions Committee.

Most of the provisions are temporary in nature. Many of the proposals were part of an insurance lobby-led campaign that blanketed Capitol Hill last week.

The ...