In times of significant business disruption, plan sponsors may want to reevaluate their plan’s matching contribution. The information below answers frequently asked questions and provides other impacts to take into account before making a change.
What is a balance forward plan? Can participants receive their full vested account balance through withdrawals or loans (including Coronavirus-Related transactions)? Why should balance forward plans with pooled investments limit withdrawals or loans? And more.
Although the CARES Act does not impact safe harbor plan requirements, the SECURE Act, signed into law on December 20, 2019, directly impacts or requires action from plan sponsors.
In response to the economic effects of the coronavirus (COVID-19), Congress passed the largest relief package in our nation’s history: the Coronavirus Aid, Relief, and Economic Security (CARES) Act.The CARES Act created a new distribution event for retirement plans called a “Coronavirus-Related Distribution” or CRD, along with expanded loan and RMD options for plan sponsors and participants during this challenging time.
The CARES Act, signed into law on March 27, 2020, has provisions directly impacting or requiring action from plan sponsors.
COVID-19 has created numerous challenges for our country, both medical and economic, creating an environment of uncertainty for Americans. One piece of good news is the recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act, which will provide much-needed financial relief to taxpayers and businesses. It includes provisions to support both employers and plan participants in 2020.