Juicing Liquidity
2020-03-21
What if the IRS opened a window of time (say, now through July 15, 2020) in which:
- Money in an IRA can be contributed without taxation or penalty to a qualified 501(c)3 (many baby boomers and others may calculate that they have enough or more than enough to get them to the finish line, and this may nudge them to help others).
- Money in an IRA can be withdrawn without penalty (but taxed in the way it normally would, i.e. as income in an IRA, tax-free in a Roth) for any reason (i.e., to pay bills and buy food). In this case, "emergency funds" withdrawn may be replaced in the future through make-up contributions to the same account they came from. This reduces opportunities for any immediate gains to be captured (assuming there are any), but it may stave off bankruptcy or lesser financial hardships.