Two out of every five American workers are cashing out of their 401K plans early with 85% of them draining their account completely. That is an alarming number, according to a study by the UBC Sauder School of Business.

Are you knee-deep in receipts, 1099 forms and W2s? Or are you all done?

Houston – With so many people unemployed, many are considering pulling money out of retirement plans to pay bills. Why 2020 is the best year to borrow from retirement plansThe federal CARES Act includes provisions that make it easier and less punitive for people who have been impacted by COVID-19 to take money out of their IRAs, 401ks and other qualified plans. Until the end of 2020, you can withdraw up to $100,000 from a qualified retirement account with no 10% penalty. Proceed with CautionDon’t think of this as a free pass to use your retirement money if your income has not been impacted by COVID-19. If you can’t provide that, you will likely have to pay the taxes and penalty on the money you took out.

Coronavirus concerns are causing some crazy fluctuations on the stock market, but it’s not all bad news. Financial Advisor Richard Rosso with RIA Advisors says there are ways you can make the down market work in your favor. This investment is intended to be long term. You will lose money in market fluctuations like we’re seeing now; but over the long term, you will make money. Don’t take everything out of the stock market.