The CARES Act: Retirement Plans and Loan Rules FAQs
The IRS has released a series of frequently asked questions regarding changes made by the Coronavirus Aid, Relief, and Economic Security (CARES) Act to retirement plans and loan rules.
The CARES Act provides distribution options for up to $100,000 from eligible retirement plans for COVID-19 related distributions as well as special rollover rules. Eligible retirement plans include certain employer retirement plans, such as section 401(k) and 403(b) plans, and IRAs.
The CARES Act also grants an additional year to repay loans from eligible retirement plans (IRAs are not eligible). The due date may be delayed for up to one year if a loan is outstanding on or after March 27, 2020, and any repayment on the loan is due from March 27, 2020, to December 31, 2020.
Read the complete IRS FAQs on retirement plans here.
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