Withdrawing retirement funds to invest
I have a retirement account from my previous employer that I wish to use to fund a deal that I currently have under contract. My question is with the CARES act am I able to withdraw that money penalty free and if I put it into an investment property will that cancel out my tax obligation come tax season next year? I have looked into using a self directed IRA and I don't have enough money in the account to make the juice worth the squeeze. Thanks for any input!
Scott Goodson
Most Popular Reply
Yes you can withdraw from retirement accounts, penalty free. I believe it caps at $100,000. However, the amount you withdraw is still subject to the ordinary income rates. The CARES Act only relieves the penalty.