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The Coronavirus Relief Bills Would Allow Investors to Tap 401(k)s Penalty-Free and Waive RMDs. Experts Have Concerns

The Coronavirus Relief Bills Would Allow Investors to Tap 401(k)s Penalty-Free and Waive RMDs. Experts Have Concerns

The American College of Financial Services
Barron's
March 24, 2020

As Congress works to pass various financial relief measures to combat the economic impact of the coronavirus, one provision would allow people with retirement savings in 401(k) accounts to withdraw money without the usual penalties. Experts, however, are divided on whether or not this is a smart move.

RICP® program director and Retirement Income Center co-director Wade Pfau says the wisdom of using long-term savings funds like 401(k)s to take care of short-term cash flow issues depends on a number of factors, including the makeup of a person’s retirement plans.

Read more on the subject and Pfau’s insights in this story from Barron’s.

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