In this video, financial guru Jason Matthews covers part 2 of the Qualified Disaster Relief Loan as part of Biden’s economic stimulus package.
In part 1, we covered the basics about Disaster Related Plan Loans and how they aim to help people who have suffered hardships outside of Covid – like the California wildfires or other natural disasters, etc.
To qualify, you must have experienced this disaster between approximately December of 2019 and December of 2020.
So, under this Disaster Related Plan Loan, you can take out up to $100,000 of your vested balance of your qualified plan as a loan – which is a non-taxable event.
Normally, you can take out only up to 50% of the vested balance or $50,000, but now that is up to 100% or capped at $100,000.
This loan is also invaluable because you don’t need to make the first payment for one year! Typically, the repayment on these loans happens immediately, so that buys you 365 days.
However, to take advantage, you need to take the withdrawal or loan BEFORE June 25th, 2021 or it will be too late.
There is one big caveat: if you get laid off or no longer work for your company, whatever the remaining balance of your loan or withdrawal is considered taxable, so you’ll have to pay a 10% penalty.
Of course, there are far more details and fine print, so contact me to discuss the opportunity for a Disaster Related Loan.
-Jason Matthews
Matthewsfinancial@gmail.com
510.22976.08
www.mfis.biz
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