CARES Act Loan and Distribution Provisions – On March 27, 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) to provide emergency assistance and health care response for individuals, families, and businesses affected by the 2020 coronavirus pandemic (COVID-19). The law contains certain provisions affecting qualified retirement plans.
Defined Contribution Plans
The CARES Act includes provisions that provide participants with access to their vested account balance without penalties. Further, the CARES Act enables participants to defer loan repayments and to skip taking Required Minimum Distributions during 2020. The link to the flyer below provides an explanation of the types of financial relief available and the new distribution and loan provisions added to the DAP.