401(k) loan fees waived

The IRS is waiving the 10 percent early withdrawal penalty on 401(k) and IRA loans taken in 2020. If paid back in tax year 2020, it won't count as income. If not paid, borrowers have three years to pay it back into retirement accounts. If funds are not repaid by the date of filing the 2020 return, the taxpayer has two options: Include one-third of the distribution in taxable income, with no penalty in tax years 2020, 2021 and 2022, or include 100 percent of the distribution in taxable income this tax year, 2020.