For several months now we have been awaiting a new stimulus package from Congress to provide additional financial relief. This second relief package would potentially provide another $1,200.00 for each individual, continued weekly federal unemployment benefits of $300.00, and Payroll Protection Program assistance for small businesses. Still, there is no agreement in sight
What are you going to do? Some of these suggestions should be your last resort options.
IRS Stimulus Catch Up
The IRS may owe you an additional $500.00 dollars if your dependents were not correct when you received your stimulus payment. According to the IRS, they plan to send out an additional $500.00 per dependent under 17 years for those taxpayers who qualify. But those amounts were not included in some of the initial stimulus payment checks. You have until September 30 to use the IRS non-filter tool to submit information on your dependents and correct any errors from the first time around. You can go to the IRS website site and type in IRS non-filter for further information.
IRA Cash Option
As a last resort, you may withdraw money from your Roth IRA without any penalty in the current year. You may withdraw amounts from your Roth IRA penalty free up to the amount of your contribution. For example, if you have contributed $1,000.00 this year you can withdraw up to $1,000.00 without paying a fee. As stated, this is a last resort after you have exhausted other options. Check with your financial adviser for further details.
Another last resort option is to take out a loan against your 401k. It is better than liquidating your 401k if your plan allows you to withdraw your investment.