CARES ACT – BENEFITS COMPLIANCE & RETIREMENT PROVISIONS

April 1, 2020

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.

RETIREMENT

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.

 

 


This information has been provided as an informational resource for Lenox Advisors, Inc. clients and business partners. It is intended to provide general guidance, and is not intended to address specific risk scenarios. Regarding insurance coverage questions, each specific policy must be reviewed in its entirety to determine the extent, if any, of coverage available for the impact of the Coronavirus. If you have questions, please reach out to your Lenox contact. Certain links to third party materials are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by Lenox Advisors, Inc. Lenox Advisors, Inc. expressly disclaims any liability for the accuracy, legality or content of the external site or for that of subsequent links. Please contact the external source for answers to questions regarding its content.

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