Cares Act
The Coronavirus Aid, Relief, and Economic Security (CARES) Act either implemented or allowed the Board to opt to implement certain exceptions to withdrawal, hardship, and loan provisions described above. The Board adopted all of the CARES Act provisions below for all of the plan types (i.e., 457(b), 401(k), 403(b), and 401(a) Match), except that, as described above, loans are not permitted from the 401(a) Match Plan.
Required Minimum Distributions (RMDs). The CARES Act waived RMD payments for retirement plans due in calendar year 2020.
Loans. For new loans, the current loan limits under the 457(b)Plan, 401(k) Plan and 403(b) Plan are doubled to $100,000 or 100% of your account balance. This provision expires on September 23, 2020. In addition, for existing loans (initiated between March 27, 2020 and December 31, 2020) , payments due in 2020 can be deferred for one year.
Corona-Related Distributions (CRDs). The CARES Act allows for tax-favored withdrawals of up to $100,000, and
The additional 10% early withdrawal tax is waived.
You’ll have up to three years to have income taxes on the withdrawal.
You can repay all or a portion of the withdrawal within three years; the repayments are not subject to contribution limits.