CARES Act Cheat Sheet

Staff article
April 7, 2020

    Provisions are for anyone diagnosed with the virus or for those experiencing adverse financial consequences as a result of the pandemic. Plan sponsors are told to rely on the employees word.

    • Take out as much as $100K for pandemic hardship between Jan. 1- Dec. 31, 2020.
    • 10% early withdrawal penalty is waived.
    • Avoid taxes if repaid distribution back within 3 years.
    • Required Minimum Distributions delayed for 2020 (including those who had not yet received their first distribution if they turned 70 ½ in 2019).
    • Loan limits have been increased from $50,000 to the lesser of $100,000 or 100% of the participant’s balance.
    • Has to be taken 180 days from the enactment.
    • Current loan repayments extended for 1 year.
    • Plan amendment does need to be adopted before the end of the 2022 plan year for these provisions.
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