Tapping Your 401(k): Is now the right time to do it?

Tapping Your 401(k): Is now the right time to do it?  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌  VIEW IN BROWSER | SUBSCRIBE WED, APR 22, 2020 YOUR WEALTH Editor's Note I continue to report to you and run the personal finance news team from my kitchen table. It's quite obvious that many Americans are trying to figure what to do with their retirement savings. People are uncertain whether to go to cash or buy more stocks at low costs. The recently passed CARES Act does make it easier for people to tap into a 401(k) plan and other qualified retirement accounts, but there could be significant long-term consequences for your financial security. For example, if you need to take cash out of your 401(k) due to financial hardship caused by the coronavirus pandemic, the CARES Act now allows you to borrow up to $100,000 (previous loan limit was $50,000) from your 401(k) plan and delay repayment for up to one year. However, taking money out of your retirement savings account when the market has fallen means you're locking in your investment losses, experts say. Also, should you move 401(k) money into a Roth IRA? Should you buy individual stocks during this market, or go with mutual funds or exchange traded funds? It's complicated. To help you make sense of all this, CNBC Senior Personal Finance Correspondent Sharon Epperson spoke with certified financial planners Carolyn McClanahan and Diahann Lassus (both members of the CNBC FA Council) to get their expert opinions to these very pressing concerns. Stay safe everyone and wash those hands! For more key stuff like this, please follow me on Twitter @jimpavia and check out CNBC's Financial Advisor Hub and CNBC + Acorns Invest in You: Ready. Set. Grow. In an effort to assist our audience when it comes to money, we urge you to sign up for our 8-week learning course to financial literacy, plus get tips on managing your money during times of crisis, delivered to your inbox. Visit: www.cnbc.com/money101/. Jim Pavia @JIMPAVIA Tapping Your 401(k): Is now the right time to do it? The CARES Act makes it easier for you to tap your 401(k) and retirement accounts, but there could be significant long-term consequences for your financial security. Senior Personal Finance Correspondent Sharon Epperson spoke with financial experts to get some insight. Why your Social Security cost-of-living adjustment could be lower in 2021 The annual Social Security cost-of-living adjustment may only be 0.8%, according to one early estimate based on first quarter data. That's less than the 1.6% bump retirees saw to their monthly benefit checks this year. Here's what's driving the forecast down. Your biggest questions answered as coronavirus stimulus payments reach bank accounts Millions of Americans have their coronavirus stimulus payments in their hands, while millions of others are still waiting to see the money. Regardless of which camp you are in, you probably have questions about how the payments work. Here's what readers have told us they most want to know now. College 529 savings accounts could suffer amid Covid-19 As the coronavirus pandemic proves financially devastating, many Americans are trading long-term goals for short-term security. That leaves college savings in the cold. Community colleges could see a surge in popularity amid Covid-19 The coronavirus crisis could have a dramatic effect on enrollment at four-year colleges and universities, sending more students to less expensive community colleges for now. What Social Security beneficiaries need to know about coronavirus stimulus payments As we enter the second week of deployment of the coronavirus stimulus checks, many Social Security beneficiaries should have received their money, while others are still waiting. Here's the latest on the timing of those payments and whether you should update the information the government has on file. Op-Ed: Here's a game plan to help create retirement security for millions of Americans As Congress considers ideas in the coming weeks seeking to help America recover from the Covid-19 pandemic, the Insured Retirement Institute has proposed a five-point plan to help American retirement savers enhance their ability to save for retirement today and ways to strengthen their financial security for tomorrow. Here's a tax break you may not get during the pandemic Now that you no longer go to an office you might think you qualify for the home-office deduction. Here's how to tell if you are eligible. Bringing financial planning topics to CNBC "Last night I hosted a special on CNBC to tackle some audience questions about financial planning, tax strategies, estate planning, risk tolerance, asset allocation, etc. ..." CONTRIBUTORS Sharon Epperson @sharon_epperson Josh Brown @ReformedBroker Unsubscribe Manage Newsletters Terms of Service Join the CNBC Panel   Digital Products Feedback Privacy Policy CNBC Events   © 2020 CNBC LLC. All rights reserved. A property of NBCUniversal. 900 Sylvan Avenue, Englewood Cliffs, NJ 07632 Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes and Market Data and Analysis. Data also provided by THOMSON REUTERS