The COVID-19 Pandemic crisis is unprecedented in modern history and is creating unemployment unseen since the Great Depression.  Families are losing their only source of income due to shelter in place orders as well as mandatory and voluntary shuttering of restaurants, theaters, sporting venues, and other industries that employ individuals on the economic margins.

Many families live paycheck to paycheck and can't afford to lose even one paycheck before they are unable to make their rent or mortgage payment. There is a solution that doesn’t require a federal bailout program.

Many families have an employer sponsored 401(k) or Individual retirement program they are unable to access until at least age 59 1/2

When people find it necessary to take out money early (before age 59 1/2) from their IRA or retirement plan it can trigger an additional tax on top of the income tax they may have to pay.

There are a few exceptions to the early withdrawal penalty such as for medical expenses, first time home buyer, military reservist called to active duty, or higher education expenses depending on the type of retirement plan.  No such exception exists for an early withdrawal during a national emergency such as the COVID-19 Pandemic.

We call upon Congress pass and President Trump to sign into law legislation to suspend the 10% early withdrawal penalty from all qualified retirement plans for withdrawals up to $10,000, for any reason whatsoever retroactively from March 1, 2020 and extending for a period of at least 90-days.

This single action will assist families in danger of losing their homes from lack of income during this period of economic dislocation.  The secondary affect will help stimulate the economy and prevent a disruption in the housing and credit markets similar to the 2008 financial crisis by injecting money into the economy.