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.
Rick Good spent ten years in the newspaper business, including with The News & Observer (Raleigh, NC) and The Greenville News (Greenville, SC). He co-wrote, with Melinda Coleman, Rutledge to Riley: Governors of South Carolina, 1776–Present (Published by The Greenville News), and is the author of Mind Games Trivia #1 (Amazon). He has recently spent 15 years creating original trivia content through Sounds Good Mobile Entertainment and continues that with his new company, SGME Software. He edits The Smart Reader’s money, real estate, and business coverage.
