[DESCRIPTION: On screen text. I took money out of my account during the Covid pandemic. What options do I have now?] [AUDIO:] [ Music ] >> Hi, I'm Michael Noel, a Retirement Counselor with Prudential. These past months have been a crazy time. COVID has affected us all financially. Thankfully, the federal government helped out with some emergency measures like the CARES Act, and making exceptions to penalties for dipping into retirement funds early. This was great for helping people get through this tough time, but it's time to talk about what options you have for your retirement account. [DESCRIPTION: On screen text. Coronavirus-related distributions (C R D): 1. Loan. 2. Withdrawal.] [AUDIO:] If you're watching this, you likely either took a Coronavirus-related loan or withdrawal, also referred to as a CRD. If you took a loan from your retirement plan, you agreed to pay back what you borrowed. The withdrawal however means you took money out of your account, and you are not obligated to pay it back. Let's talk about the loan first. Remember, this was a loan from your own account, so think of it as paying yourself back. [DESCRIPTION: On screen text. Loans. Can repay with after-tax dollars. Possible. Interest payments. Income tax. Penalties.] [AUDIO:] Repaying your loan will likely increase the funds available to you at retirement and also give them a chance to grow over time. Not repaying your loan will likely do the opposite. If you fail to make the required payments, you ultimately may need to pay income taxes and maybe even early withdrawal penalties on the balance. You can avoid these extra costs by simply paying back your loan, on time, within the terms you agreed to when you took it out. If you took a COVID-related loan, and possibly even if you didn't, you may be eligible to suspend repayments on existing loans into January 2021. Talk to a Prudential Retirement Counselor if you need to explore this option through your plan. If you were eligible and took a COVID-related withdrawal, you have two options, pay yourself back or don't. [DESCRIPTION: On screen text. Withdrawals. Can't repay? Income tax. Can repay? Lump sum. Payments over 3 years.] [AUDIO:] First, you are not legally obligated to repay the withdrawal, which you'll have to pay taxes on the amount you took out of your savings since it counts as income. The CARES Act allows income taxes to be paid over three years. You need to talk to your tax advisor for details. The other option is to repay all or some of the amount you withdrew. If your plan allows, you can pay the money back into your retirement savings account. You can do that all at once, or you can spread those payments over three years which is good if you're strapped for cash. There's another perk to paying yourself back. If you pay back the full withdrawal within three years, you won't owe income taxes on that amount until you withdraw in retirement. Again, you'll need to talk to your tax advisor for details. Remember, just like with the loan, paying yourself back likely will increase your available savings at retirement because your retirement savings have a better chance to recover and continue to grow. [DESCRIPTION: On screen text. Job and income stable? Consider increasing your contributions. Even 1 percent can make a difference.] [AUDIO:] And if your job and income are stable, and your plan allows it, you might want to increase your contribution rate to make up for lost time. Even if it's just a small one-percent bump, it'll help boost your long-term savings, and if your contributions are pre-tax, you may not even notice the difference in your paycheck. If you aren't really sure what makes sense for you, don't worry, you have help. In your online account, click the "My Financial Life" tab for great do-it-yourself resources. [DESCRIPTION: On screen text. The Financial Wellness Experience. The site hosts helpful content that includes a wide range of topics, including budgeting, debt management, life insurance, estate planning, college funding, and saving for retirement. The content will be customized over time based on your interests and goals. The My Accounts homepage provides a consolidated view of all your Prudential accounts. Manage personal finances and a budget on a single site. The My Financial Life tab contains education and tools and is accessible anytime, from any device. Interactive and insightful tools, including self-assessment and budgeting tools. Over 100 short and relatable educational articles. Engaging, topic-specific videos.] [AUDIO:] And, if you need more personalized help, you can always set up a virtual one on one with a counselor, like myself, who can answer any questions about the features of your retirement plan. [DESCRIPTION: On screen text. Schedule your virtual one-on-one at connectwithpru.com/1x1/retirement-coach.] [AUDIO:] Everyone's situation is different, but no matter where COVID has put you financially, remember, we're here to help. [DESCRIPTION: On screen text. Prudential. This material is intended to provide information only. This material is not intended as advice or recommendation about investing or managing your retirement savings. By sharing this information, Prudential Retirement is not acting as your fiduciary as defined by the Department of Labor or otherwise. If you need investment advice, please consult with a qualified professional. Retirement Counselors are registered representatives of Prudential Investment Management Services L L C (P I M S), Newark, New Jersey, a Prudential Financial Company. Retirement products and services are provided by Prudential Retirement Insurance and Annuity Company (P R I A C), Hartford, Connecticut or its affiliates. P R I A C is a Prudential Financial company. Financial Wellness offerings, including access to any third-party referrals, are provided by Prudential Workplace Solutions Group Services, L L C ("P W S G S"). P W S G S is an affiliate of Prudential Financial, Incorporated. P W S G S is not a licensed insurance company, does not provide insurance products or services, and does not provide financial, investment or tax advice. The Financial Wellness offerings are made available solely for general financial education purposes. Individuals should consult appropriate professionals when making financial, investment and tax decisions. Financial Wellness offerings, including any products, services or other solutions, described in this document are voluntary, individually-selected offerings. They are not part of any employee benefit plan, or any program sponsored or endorsed by an employer. Copyright 2020 Prudential Financial, Incorporated and its related entities. Prudential, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Incorporated, and its related entities, registered in many jurisdictions worldwide. 1039289-00001-00. NOT01_VI_RE83_01.] [AUDIO:] [ Music ]