The Coronavirus Aid, Relief and Economic Security (CARES) Act,(the Act) offers comprehensive relief to Atlanta businesses and individuals during this unprecedented emergency. It comes on the heels of the Families First Coronavirus Response Act, which solidified new and existing paid sick leave policies and created tax credits for impacted companies. However, this was simply not enough to manage the impact stay at home orders and forced closings have had on businesses. As a result, the Act was passed providing tax, retirement, financial management, payroll, expanded funding opportunities and more. In a prior blog post, we outlined the major tax opportunities created by the Act. In this post, we have provided a summary of the key retirement plan and financial management opportunities designed to help plan participants and sponsors.
Key Opportunities
Impact on Plan Sponsors
The various changes outlined above will present some operational challenges for plan sponsors. The changes to RMD rules should be easy to implement because they are similar to the changes implemented during the 2008 financial crisis. The extension of loan dates could present the biggest issue because plan sponsors need to manage the administrative aspects of the change. This includes communication with participants, creation of new loan procedures and re-amortizations of loans due this year.
Contact Us
There are many important changes that plan sponsors need to consider and implement as outlined in the Act. For individuals, there are a variety of options available for accessing plan funds to help in this time of emergency. If you have questions about the information outlined above or need assistance with a plan management issue. Wilson Lewis can help. For additional information call us at 770-476-1004 or click here to contact us. We look forward to assisting you in these challenging times.
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