The CARES ACT: Helping Your 401(K) Participants During the Coronavirus Crisis

“This is the third in our series of articles on special CARES Act provisions designed to help your 401(k) participants.  In our prior articles, we discussed the temporary loan enhancement rules and coronavirus-related distributions (CRDs).  Here we discuss the temporary relief from taking required minimum distributions.

What the CARES Act Provides

For defined contribution plans (e.g., 401(k) plans, 403(b) plans, and 457(b) governmental plans) and IRAs, the CARES Act provides temporary relief from the required minimum distribution (“RMD”) rules.  The following chart explains this relief in the context of plans; the rules for IRAs are much the same.” Continue reading.

Source: Fred Reish, Bruce Ashton and Betsy Olson