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.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.

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American Funds Distributors, Inc., member FINRA.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.