FAQs on Employee Benefit Plan Retirement Benefits
The Department of Labor released guidance on employee benefit plan retirement benefits to help employee benefit plans, plan participants and beneficiaries, employers and other plan sponsors, plan fiduciaries, and other service providers impacted by the Coronavirus pandemic.
CARES Act Background
The CARES Act expands access to retirement plan distributions and loans for qualified individuals impacted by Coronavirus. Distributions taken by a qualified individual from an eligible retirement plan on or after January 1, 2020, and before December 31, 2020, are considered “coronavirus-related distributions” to the extent they do not exceed $100,000 in the aggregate. The distributions are not subject to the 10% penalty.
The CARES Act also increased the limit for new plan loans. Qualified individuals may take plan loans up to the lesser of $100,000 (instead of the usual $50,000) or 100% (instead of the usual 50%) of their vested account balance.
Frequently Asked Questions
The FAQs include information on health benefit and retirement benefit issues to help employee benefit plan participants and beneficiaries, plan sponsors, and employers understand the options they can take for their plans.
Read the FAQs here.
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