CARES Act - 457B Plan Withdrawal of $100,000

[Craig Lessler]

I have a 457B Plan and would like to know if I am eligible under the CARES Act as a real estate investor to withdraw $100,000 from my 457B Plan.  Assuming My State job is unaffected by COVID-19, does anyone know if I can qualify for a hardship withdrawal based upon also being a real estate investor impacted by COVID-19?

[Craig Lessler]

@Mark S, my 457B Plan last night updated its website to allow for up to a $100,000 withdrawal by adding this notice:

“The Act will allow for tax-favored withdrawals up to $100,000, and

• The additional 10% early withdrawal tax is waived.
• You’ll have up to three years to pay income taxes on the withdrawal.
• You can repay all or a portion of the distribution within three years; the repayments are not subject to contribution limits.”
• 
  With 457B Plans, there is also never a 10% penalty for early withdrawals even without the CARES Act.  The problem is that the Plan previously did not allow for withdrawals if you continued your employment with the state (unless you could show a severe hardship).