IRS Provides Definitive Guidance on CARES Act Retirement Plan Provisions
Highlights
The IRS has provided additional guidance on coronavirus-related distributions and special participant loan terms applicable to retirement plans under the CARES Act
The definition of a qualified individual has expanded to make coronavirus-related distributions and the special participant loan terms more accessible
The guidance also clarifies that retirement plan provisions in the CARES Act are optional and provides direction on tax treatment and administration of coronavirus-related distributions
Since the Coronavirus Aid, Relief and Economic Security Act (CARES Act) was adopted in late March, retirement plan sponsors and participants have requested clarification regarding certain provisions that temporarily increase access to plan distributions (in the form of “coronavirus-related distributions”) and participant loans, and also relax loan repayment terms for participants who are “qualified individuals.”
Keep Up to Date in a Changing World
