Industry News

On May 4, 2020, the Internal Revenue Service (IRS) posted Questions and Answers (Q&As) on its website, Coronavirus-Related Relief for Retirement Plans and IRAs Questions and Answers.  The Q&As are related to various retirement plan distribution options and loan provisions for certain qualified participants under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) enacted on March 27, 2020.  The Q&As indicate that each of the distribution and loan provisions are optional for employers to adopt or not adopt. 

The IRS specified that it intends to issue formal guidance regarding the CARES Act distribution and loan provisions in the near future, and anticipates that the guidance will generally be similar to the provisions of the prior guidance under Notice 2005-92 related to the Katrina Emergency Tax Relief Act of 2005 (“KETRA”), which was issued on November 30, 2005 and applied to victims of Hurricane Katrina.

The Q&As are available here.