Article by Lauren Parker and Joshua Sutin on “INSIGHT: Qualified Plans Under the CARES Act—What Employers Need to Know”
In an article published on April 24, 2020 in Bloomberg Tax, Chamberlain attorneys Lauren Parker and Joshua Sutin discuss the provisions and employer considerations for the coronavirus relief legislation that authorized distributions and loans from retirement plans without penalties or withholding requirements to assist employees and plan participants suffering economic consequences from the COVID-19 pandemic.
“The Coronavirus Aid Relief and Economic Stability Act (CARES Act (Public Law 116-136)) implements several changes to qualified retirement plans which are geared to assist employees and plan participants who suffer economic consequences related to Covid-19 and the stay-at-home orders issued throughout the majority of the U.S. which should be carefully considered,” explains Parker and Sutin.
Recordkeepers and document providers have amended their plan documents to implement the CARE Act changes and allow employers to opt out of most of the amendments. Parker and Sutin remind employers to review documentation from their providers as employers have the duty to opt out or revise amendments they may object.
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