Best way to withdrawal 401k

[Angel Nieves]

Hello, I want to withdrawal from my 401k to have ready for an investment opportunity.

Has anyone taken a withdrawal from their 401k retirement account during this covid pandemic? 

Per the Care act- an individual can now take a withdrawal of up to $100,000 from eligible retirement plans, including 401(k) plans and IRAs in which you don't have to repay the funds. 

To my understanding, The only thing I'd have to pay is the 10% federal tax. But prior to this coronavirus pandemic, if you were under age 59½, taking a distribution from your 401(k) would trigger a 20% federal tax hit and a 10% early distribution penalty which doesn't sound smart to me

I want to know if now is a Smart time to take that money out and invest it else where where it'll multiply. Im 24 years old & im just getting into investing. I have about 18k in my 401k and I want to know what's the best way to remove that money out without getting hit. The care act is until 12/31/2020.

I've also heard people say that if structured correctly, I can get a custodian to move my 401k into a self directed IRA (like an IRA financial trust), to then move the money into an investment like RE. Like this ALL the in come and gains are tax fee.

Would love some help on this topic!