December 14, 2020
CARES Act reminders
Under the CARES Act, retirement plan sponsors could allow participants to take coronavirus-related distributions and to defer certain loan repayments for 2020. Required minimum distributions were also waived for 2020. As 2020 comes to a close, here are a few reminders:
• Coronavirus-related distributions (CRDs) — CRDs will no longer be available after 2020. If a plan allows CRDs, distribution forms must be received in good order before the market close on December 30, 2020.
• Loan repayments — Any coronavirus-related suspension of loan repayments applies to repayments due from March 27 to December 31, 2020. We’ll re-amortize all impacted loans and update the amortization schedules online.
• Required minimum distributions (RMDs) — RMDs for 2020 are not required. For participants who stopped their automatic RMDs in 2020, the previously established automatic RMD schedule will resume in 2021 unless otherwise requested.