The CARES Act opened up new penalty free distribution options for IRA, 401(k), 403(b), and other types of employer sponsored plans. In addition, taxpayers will have the option to spread the tax hit over multiple tax years and they also have the option to repay the amount within a 3-year period and avoid taxation on the distributions. Also there are new enhanced loan limits within 401(k) plan that will allow plan participant to take loans up to the lesser of 100% of their vested balance or $100,0000 and defer payments on those loans for a year.
