COVID Related Distribution - Makes Sense for Me?

[HarryCanary]

Long time lurker, first time poster. Thank you for the collective wisdom on this site.

I had planned to finally get my stuff together and start maxing out the space I have in the 12% bracket by starting Roth conversions this year. My accounts with my previous employer are 403B/403As. I learned in rolling over to a traditional IRA that I can only rollover the 403B and not the 403A that has the employer's contributions. So the funds available to me for Roth conversions are lower than originally anticipated. The bulk of my retirement savings are in my 401K with my current employer and are not eligible for rollover until I leave the company. So, I am considering taking advantage of the CARES Act allowing covid related distributions and using that money to fully fund Roth IRAs for myself and my spouse for 2020 and 2021.

Here are some important details:
I currently max out my 401K and family HSA; spouse does not have access to a retirement plan through their employer.
We have only managed to contribute $3K/year to my spouses Roth IRA; I have not yet opened a Roth IRA for myself. (I know, we are terrible mustachians!)
We have room for $18k in income in the 12% bracket.
$18k would exactly fully fund two Roth IRAs for my spouse and myself for 2020 and 2021, along with the $3K/year we already planned to contribute.
I adjusted my federal witholdings earlier in the year to accommodate an additional $18k in income. I don't have to worry about a big tax bill.
I tested positive for covid last month.
My employer's 401k plan allows for covid related distributions.

Before I pull the trigger, I just need a reality check. Is there anything I am missing? Any concerns?
Thank you so much.

[HarryCanary]

Ok, I think no replies means there are no obvious flaws in my plan. Which is what I needed to know!
Thank you so much.

[Ethel]

I'd wait more than a day for replies, honestly.

I'm not in the US so I can't give advice.

[Sibley]

I didn't reply because I don't know enough about the CARES act. But my instinct is its a terrible idea, though I can't tell you why.

What's going on with your income and expenses? Why can't you max without a loophole?

[BikeFanatic]

I do not understand your situation either, maybe explain it in more detail like I make this much, spouse makes this much, we pay x amount in tAxes....to me it sounds like you are trying to fund an ira Roth and you want to know if it is a good idea tax wise to take from 401k?

[Trifle]

@HarryCanary there was at least one earlier thread about this with lots of good information:  https://forum.mrmoneymustache.com/taxes/do-i-qualify-for-coronavirus-related-ira-distribution/.   Check it out.  Incidentally, it looks like 403As are eligible for coronavirus withdrawals, if that’s something you’s like to do.