The number of millionaires — before taxes, of course — is a relatively small percentage of the total number of retirement plan participants. However, under the Cares Act, the 10 percent penalty is waived for retirement account distributions up to $100,000 for employees experiencing financial hardship related to the pandemic. ADADHere’s an FAQ on the Cares Act rules that addresses the financial relief provided to retirement plan participants. As of Nov. 12, more than 96,000 TSP participants took withdrawals under the Cares Act, totaling close to $2.3 billion. Overall, despite turbulence in the stock market, retirement plan participants stayed the course.

Source: Washington Post November 16, 2020 12:00 UTC