Lawmakers in Washington are making it easier for Americans struggling with the fallout from the coronavirus to draw on the trillions of dollars in their 401(k)s and other retirement accounts. For a limited time, Americans will be able to withdraw money from tax-deferred accounts without penalties under a stimulus package signed into law Friday by President Trump. Rules on 401(k) loans will be relaxed, and some retirees can avoid so-called required minimum distribution, or RMD, rules that might have been onerous. One provision lets investors of any age take as much as $100,000 from retirement accounts this year without paying an early withdrawal penalty. They also can avoid taxes on the withdrawal if the money is put back in the account within three years. If it can’t be returned, taxes can be paid over three years. Citigroup has been given a choice whether or not to enact this provision within the law. Our lawmakers gave the same businesses that they are bailing out, the choice of whether or not to allow their employees who have been greatly affected by the Coronavirus to have access to their 401k savings in this time of great need. Businesses who take the governments money should not have been given a choice but should have been forced to allow needy Americans access to their 401k's at this time. The need for some is greater than it was in the 2008 crash. So far Citigroup has not made up their mind whether or not to help out their employees by allowing them access to their own money. To me, this is a no brainer. People need help and if Citibank cares about their employees, they will allow us access to our 401K money. The need has never been greater in our lifetime. The law has been made very simple. Citigroup just needs their employees who are hurting to withdraw as much as they need from their 401K and then the employee can pay it back within 3 years or pay the taxes over a 3 year period penalty free. The need is great. Citigroup, act now. Please stop thinking about it and just do it. Our congressmen, our senators and our president put this provision in the law to help hard working Americans. There is no need for you to refuse to enact this provision unless you only care about your own profits.
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pay it back in three years??? LOL with what— Millions are unenployed
what a joke
this is of no help
if they really want to make a difference then anyone should be able to take their money out without penalty. This way they could stimulate the economy.
Second... if your standard 401 then pay the taxes if roth then its free an clear as you already paid upfront
Oh, they'll probably do it sometime or other. The 401K is probably on a mainframe platform just like most of their systems. So making changes is really hard, especially if still written in COBOL. The company did just announce a task force to handling all of the changes COVID-19 is putting us through so there is some hope.
At least they made the matching contribution this year. I wouldn't expect much next year - certainly no bonus or pay raise.
I am so sorry to hear what you and your family are going through
I have been trying to be patient with Citi and waiting for them to enact the new care act dealing with the 401(k)'s and retirement accounts. My husband and I are in desperate need of accessing our money at this time due to the Covid-19 shutdown. I am a Citibank employee and my husband and I invested our life savings into starting a new business. Just as we were getting it up and going, everything shut down. Now we find ourselves very close to losing everything, including our home which we put up as collateral and everything that we invested in to get the business up and running. I have patiently been calling Citi for the last 3 weeks and asking them when they are going to enact the care act as our senators and congressmen wanted them to do. Citigroup is dragging its feet. They have no answers as to if or when they are going to make the changes. I am asking Citigroup to grant us access to our own money before we lose everything. I know Citigroup wants to profit from the 401(s) and they don't want the employees withdrawing money from Citigroup stocks but they need to put the needs of their employees before their own bonuses. Our politicians came together and did the right thing for the American people. They enacted a law to allow us to have access to our 401(k) savings and waved the 10% penalties. They also wrote the law in such a way that we can spread out our tax payment over a 3 year period on withdrawals made in 2020. By doing so, they are asking companies to comply with that law. If a company as big and as wealthy as Citigroup does not comply with this law, I for one am going to ask for an investigation into why they choose not to. Citigroup, if you care about your employees, enact the Cares Act 401(k) law immediately as it was written.