Time to Pay the Piper for your Retirement Withdrawal

The Covid Lockdown caused a lot of people to lose their jobs and lean on their savings. America's Money Answer Man Jordan Goodman explains. " The CARES Act allowed people under 59.5 years of age to take money out of their retirement account - like IRAs and 401(k)s - without penalty - up to $100,000 to help tide them over during tough times." Godman says many people who took advantage of the offer are now realizing retirement is going to look pretty bare. "Those people - if they can possibly do so - will have to max out their future contributions to possibly make up for where their accounts were before the pandemic."

"The intention was good - but the end result is that people who took money out are not going to have as much money because they raided their account. Now it's kind of hard to put it back into the accounts and expect to get back to where they were."

Real Estate Witch found 35% of Americans dipped into their retirement savings in 2020.


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Taking money out of your retirement accountPhoto: (Getty Images/Outline205)

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