CARES Act and Your Retirement Plan
March 27, 2020, Congress passed The Coronavirus, Aid, Relief and Economic Security (CARES) Act. It includes important, impactful relief available to your plan and participants.
CARES provisions are optional where noted and our office recommends plan sponsors only add relief provisions as specific need arises.
Qualifying Coronavirus-Related Distributions (Optional – Amendment Required):
Relaxing of Loan Provisions (Optional – Amendment Required):
Retirement plans are permitted to adopt these rules immediately, even if the plan does not currently allow for hardship distributions or loans, provided the plan is amended on or before the last day of the first plan year beginning on or after January 1, 2022.
Waiver of 2020 Required Minimum Distributions (RMD) (No Amendment Required):
For participants who turned 70 ½ in 2019 with a Required Beginning Date of 4/1/2020:
We encourage you to reach out to our office to discuss this important legislation.