Retirement savers appear to be taking advantage of relaxed rules around 401(k) withdrawals during the coronavirus pandemic.
The typical 401(k) investor pulled $12,000 from their account in the form of a “coronavirus-related distribution,” according to a new Vanguard analysis of its client data.
This figure represents the median withdrawal — in other words, the amount right in the middle of all withdrawal amounts.
Coronavirus-related distributions are a new type of retirement withdrawal, enacted in March by the federal CARES Act to help cash-strapped individuals during the economic downturn.