As a business owner or 401(k) plan, it is essential to understand how the Coronavirus Aid, Relief, and Economic Security (CARES) Act can affect you.
If you offer a 401(k) plan to your employees, you should be familiar with the Coronavirus Aid, Relief, and Economic Security (CARES) act. This relief to 401(k) plans went into effect on March 27, 2020, following the Coronavirus Pandemic. It offers qualified plan participants additional protection and allowances to combat the financial uncertainties that have come with the pandemic. As a business owner or plan participant, it is essential to understand how these changes may affect you.
• Distribution Right. Distribution right of up to $100,000 from the plan (not to exceed the participant’s account balance) through December 30, 2020, that is subject to special tax relief.
• Loan Limit Increase. Increase in the loan limit under Code section 72(p) from $50,000 to $100,000 (or 100% of the participant’s account balance, if less) for loans made from March 27, 2020, through September 22, 2020.
• Loan Suspension. Suspension of loan payments due March 27, 2020, through December 31, 2020, for up to one year.
If your current plan advisor has not gone through these significant plan changes for you and your employees, it may be time for a complimentary plan review with Retirement Service Providers. We are an independent organization that offers the experience and knowledge essential to designing and servicing your retirement plan. Call them today at 716-204-9577 or visit www.retirementserviceproviders.com.
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So, What is a Certified Social Security Claiming Strategist (or CSSCS)? Certified Social Security Claiming Strategists are individuals who have completed a training course and have gained the proper knowledge to assist you in the area of Social Security claiming.