Down payment from coronavirus-relief section 2202 CARES Act

A

Ahmed

New member
What do you think about withdrawing IRA to buy first home?  IRS Section 2202 of the CARES Act, anyone in 2020 who is diagnosed with covid-19, furloughed, laid off, or reduced work hour can qualify for a penalty-free distribution. i think in my mind this is good idea because this allows to tap not only our contribution but the employer contribution and not pay the 10% penalty. Then use this money to buy first home as a down payment.

any clue if this is good decision.?

i find the iRS link here:https://www.irs.gov/newsroom/corona...tirement-plans-and-iras-questions-and-answers
 
I guess it depends on how much you want to take out and whether you think the home is worth the investment.  I generally see it as a last resort.

I don't even have an IRA because I don't qualify for the deduction and there is no contribution from my employer. 
 
Have you really been impacted by the virus if required to prove this ? anyone in 2020 who is diagnosed with covid-19, furloughed, laid off, or reduced work hour can qualify
 
I was doing some more research on this. While generally its discouraged to withdraw money from 401k, my reading so far indicates that under CARES act,  the govt is basically providing a means to ppl to use these funds as they please to boost economy.  I learnt that one could just  self certify that they are impacted and IRS would simply accept it.
For folks in this forum, does anyone see any issues and challenges if one withdraws 401k money in this manner under CARES  act?

 
Irvinehomeseeker said:
I was doing some more research on this. While generally its discouraged to withdraw money from 401k, my reading so far indicates that under CARES act,  the govt is basically providing a means to ppl to use these funds as they please to boost economy.  I learnt that one could just  self certify that they are impacted and IRS would simply accept it.
For folks in this forum, does anyone see any issues and challenges if one withdraws 401k money in this manner under CARES  act?
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