So, 20 year employee of Slave Farm. Today I requested a check from my 401K. Today I was told (by 2 different employees, including a "manager") that the Cares Act does not apply to Slave Farm. Now, as you know, the Cares Act waives the 10% withdrawal fee as well as the 20% tax....it allows you to spread the 20% tax amount over 3 years. Thanks Slave Farm.
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Why would you even think about doing that? I assume you have a college degree. That would be one of the poorest decisions financially a person would make. Dont spend money you dont have.
So you’ll have to live with having tax deferred growth and a tidy nest egg at retirement. That must really s— for you.
Great news for the OP. You can now submit tour menstrual supplies for reimbursement due to the CARES Act.
Why would it NOT apply to State Farm. Makes zero sense They just don’t want to change their automated systems. That’s it or disobeying law for gain
State Farm is not exempt from any laws. They, like any employer, set up their 401k (in accordance with laws set by Congress) to include or exclude certain features. The CARES Act did not mandate any changes to those features or alter the terms of the plan as established.
NO Longer employed with Slave Farm and I was told it did not matter. Slave Farm does not have to follow the Cares plan.
I swear coronavirus has made somewhat normal people really dumb, and dumb people crazy.
Your info only applies if you are UN employed. If you are EMPLOYED, the company does have final say. Took me 2 minutes to find the info.
You seem to be under the mistaken impression that State Farm writes tax law and decides how it is applied. They do neither.
Regarding the CARES act 401k option your company needs to opt in. If you do not pay the funds back in 3 years they will taxed. The 20% you quote is not the tax rate it's the mandatory withholding that typically applies for certain retirement plan distributions. If you don't pay back the funds the tax rate is whatever your marginal tax rate is (e.g. income +distribution = taxable income).
Are you talking about a HARDSHIP withdrawal?
This article (before final bill passed by the House of Representative) discusses it.
If it made it into law, as long as your withdrawal is TRULY a hardship case, State Farm should have any say in the matter.
https://401kspecialistmag.com/cares-act-rmd-early-withdrawal-waivers-a-closer-look/
Why would you want to withdraw the money it is your best wealth building tool. Think a little at least.