- Jurisdiction
- US Federal Law
Under the CARES act, there is the provision to be able to withdraw funds form your 401K, without the usual penalties. And you only have to give your word that it's COVID19 related. The company I work for is trying not to lay anyone off, and is offering to allow you to volunteer to take time off unpaid. It could be a day here and there or a week or a month at a time.
Several co-workers have taken various amounts of time off, and tapped into their 401K's. I'm curious about a couple things. It seems like this could bit them since they volunteered to take the time off, rather than it being forced. But form what I read in the act, it only says if you incurred a loss.
The other question is, some of them took a sum of money, but don't know how much time they will actually take. So let's say someone took out enough money to cover 10 days, but only took 2 off, what would be the chances of trouble over that?
I realize, this is hypothetical given this has never happened before, but what are opinions about the potential of landing in hot water on this?
Several co-workers have taken various amounts of time off, and tapped into their 401K's. I'm curious about a couple things. It seems like this could bit them since they volunteered to take the time off, rather than it being forced. But form what I read in the act, it only says if you incurred a loss.
The other question is, some of them took a sum of money, but don't know how much time they will actually take. So let's say someone took out enough money to cover 10 days, but only took 2 off, what would be the chances of trouble over that?
I realize, this is hypothetical given this has never happened before, but what are opinions about the potential of landing in hot water on this?