With the COVID-19 pandemic forcing a number of Americans to be laid off, many people are taking a close look at 72(t) plans, which allows you to withdraw money without the usual 10% penalty, even if you are below the age of 59.5 years old.  Dubbed 72(t) plans, they give you a series of equal payments taken at least annually.  The duration of the plan must be at least five years or until the person reaches 59.5 years, whichever is longer.  Talk to your tax planner, Monterey County Bank or one of our other local banks about this option.  Another possibility which was made as part of the Cares Act is an exemption to coronavirus-related distributions as another exception.  If you are interested in this option, act quickly as it’s only available until year end.


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