CARES Act 401k Loans

[Brendan August]

Hey everybody, I was just wondering if anybody has made use of the the CARES Act to withdraw money penalty free from their retirement accounts? I understand that you still have to pay taxes on the amount but you can spread this out over 3 years I believe. 

I was thinking of doing this to use as a down payment on a rental property, rehabbing it and then hoping to refinance it to pay back my account. 

I could also roll my 401k over into a self-directed account, but I think I would have to pay taxes on that immediately (I could be wrong) and just purchase and rehab the rental in from within my account? 

Any advice or thoughts on this would be great, unfortunately my 401k is the only place I have enough money to use as a down payment or purchase a property with cash. I probably should've tried to make sure I was more liquid but the 401k is where the majority of my funds are. 

Thanks! 

[Daniel Zapata]

Hello Brendon,
Based on my research:
* You need to check with your 401k provider to ensure they will do this.
* You need to self-certify that you are affected by covid-19 (work hours cut, you or a close family member contracted covid-19, etc);
* If you pay it back within the 3 years, you can claim back the money you paid in taxes.

You also have the option of doing a 401k loan vs withdrawal.

Good luck!