The CARES Act also has several provisions relating to employee benefits, both on the health side and the retirement side, as well as a few miscellaneous provisions on fringe benefits (student loan repayment).
View this benefits compliance summary for more information.
The CARES Act contains provisions meant to loosen access to money in retirement vehicles. It also contains provisions meant to alleviate certain retirement plan requirements, providing plan sponsors with the option to waive the 10% early withdrawal penalty on participant distributions of up to $100,000, increase participant loan limits, and suspend existing participant loan repayments for individuals impacted by COVID-19. In addition, the Act waives required minimum distributions to be paid in 2020, provides plan sponsors relief in delaying contribution due dates for defined benefit and money purchase pension plans, and empowers the Department of Labor with broad authority to extend certain notice deadlines.
For more information on the retirement provisions of the CARES Act, click here.