Tag Archives: CARES Act

The CARES ACT: Helping Your 401(K) Participants During the Coronavirus Crisis

Waiver of Required Minimum Distributions

By Fred Reish, Bruce Ashton and Betsy Olson

This is the third in our series of articles on special CARES Act provisions designed to help your 401(k) participants.  In our prior articles, we discussed the temporary loan enhancement rules and coronavirus-related distributions (CRDs).  Here we discuss the temporary relief from taking required minimum distributions.

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The CARES Act: Helping Your 401(K) Participants During the Coronavirus Crisis

The Enhanced Loan Provision for Qualified Participants

By Fred Reish, Bruce Ashton and Betsy Olson

With the spread of the coronavirus and the resulting closures and cutbacks, many 401(k) participants are working reduced hours, but are not considered to be terminated for purposes of ERISA.  Furloughs and similar required leaves are common for businesses whose employees interact directly with retail customers, such as restaurants, stores, and gyms.

Many of those employees do not have high incomes or significant savings.  As a result, they are likely facing financial crises, including possible eviction, loss of credit, and inability to purchase necessities.  Employers, in their roles as plan sponsors, may be able to help those participants.

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