If you are struggling financially due to the COVID-19 epidemic, you will be happy to know Congress, as part of the CARES Act enacted on March 27, has made it easier for you to access your retirement funds during this emergency.

Normally, withdrawals from traditional IRAs and qualified plans such as 401(k)s, self-employed pension plans (SEPs), tax sheltered annuities (TSAs), etc., are taxable when withdrawn and subject to a 10% early withdrawal penalty if withdrawn before you turn age 59½.

For the rest of 2020, you will be able to tap those accounts for up to $100,000 and avoid the 10% penalty, although the distributions will still be taxable. To qualify, you, your spouse or a dependent must have been diagnosed with either SARS-CoV-2 or the COVID-19 virus or have been quarantined, lost your job, had your hours reduced or are unable to work due to lack of child care. To ease the taxes on these distributions, you can choose to have distributions taxed 1/3 in 2020, 2021 and 2022. Or, if your income is very low in 2020, it might be better to tax a distribution entirely in 2020. That is a decision that can be made when you file your 2020 tax return. You also have the option of paying the distribution back over a three-year period.