CARES Act 2020: Retirement Fund Access and Student Loan Relief
The Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 provides more than $2 trillion in relief for businesses and individuals affected by the COVID-19 pandemic. The new law includes provisions that provide temporary support related to retirement assets and student loan payments to help Americans deal with the economic impacts of the pandemic.
Here are four things to know:
The CARES Act waives all required minimum distribution requirements for tax-qualified defined contribution plans, including 401(k) plans), 403(a) and 403(b), government-sponsored Section 457(b) plans and IRAs for the calendar year 2020. The 2020 RMD waiver applies to individuals who have already been taking RMDs or those who would have taken their first RMD in 2020, including: (1) an individual who is 72 or older in 2020; (2) an individual who reached the age of 70½ prior to January 1, 2020; and (3) certain death beneficiaries.
Source Fool.com
