Special Distributions to Qualified Participants
By Fred Reish, Bruce Ashton and Betsy Olson
Our first article discussed CARES Act provisions designed to help your 401(k) participants with temporary loan enhancements. Here we discuss a second provision of the Act that can help participants who are affected by the coronavirus (called “qualified individuals”*). This is a special coronavirus-related distribution (a CRD). Though we discuss this in the context of 401(k) plans, the CRD provision applies to all qualified plans, 403(b) plans and IRAs as well.