Provisions are for anyone diagnosed with the virus or for those experiencing “Adverse Financial Consequences as a result of the pandemic. Plan sponsors are told to rely on the employee’s word.
- Take out as much as $100K for pandemic hardship between Jan. 1- Dec. 31, 2020.
- 10% early withdrawal penalty is waived.
- Avoid taxes if repaid distribution back within 3 years.
- Required Minimum Distributions delayed for 2020 (including those who had not yet received their first distribution if they turned 70 ½ in 2019).
- Loan limits have been increased from $50,000 to the lesser of $100,000 or 100% of the participant’s balance.
- Has to be taken 180 days from the enactment.
- Current loan repayments extended for 1 year.
- Plan amendment does need to be adopted before the end of the 2022 plan year for these provisions.