Under special rules for 2020, holders of a Roth IRA may be able to take a distribution without a penalty.
The coronavirus stimulus bill (the CARES act) allows those affected by the pandemic to take a distribution of up to $100,000 without the 10 percent early distribution penalty.
The CARES rule gives Roth owners three years to pay the tax owed on withdrawals instead of in the current year. Roth owners also have the option to repay the withdrawal without owing any tax, even if the amount exceeds the annual contribution limit.
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.
