Frequently asked questions


  Coronavirus-related withdrawal

Cash withdrawal
There are several differences between a standard cash withdrawal and a coronavirus-related cash withdrawal. For a standard cash withdrawal, your cash availability is based on your plan rules. Regular cash withdrawals have a mandatory 20% tax withholding. Additionally, if you are under 59½, there may be a 10% early withdrawal penalty.
 
Coronavirus-related withdrawal
To qualify for a coronavirus-related withdrawal, you must meet specified requirements, which allow you to request funds up to $100,000 or 100 percent of your vested account balance. Additionally, unlike a standard distribution, a coronavirus-related withdrawal offers the benefit of not being subject to the 10% early distribution tax or mandatory 20% withholding.

Coronavirus-related withdrawals must be initiated prior to December 31, 2020.

If you qualify for a CARES Act withdrawal, there is no limit to the number of withdrawals you may take. Please note the total amount of distributions an individual may receive as coronavirus-related distributions shall not exceed $100,000 across all retirement plans. If total amounts reported on your 2020 1099R exceeds the $100,000, the excess amounts will be taxed as ordinary income and may be subject to the 10% early withdrawal penalty.

Yes, funds may be returned to an eligible account over the course of the three-year period following the withdrawal. Funds returned within that time frame will be treated as an indirect rollover and will not be subject to taxation. Taxes due on funds not returned to an eligible account may be spread over a three-year period.


  Loans

You may delay loan payments until December 31, 2020. Payments will begin again in January 2021.

Should you defer your loan, payments will begin again in January 2021. Interest will continue to accrue during the loan deferral period and the loan will be re-amortized to reflect the interest accrual and new payment dates.