This Benefits Brief is an update of an earlier version posted to
the Coronavirus Hub on www.ButlerSnow.com to reflect subsequent IRS
guidance.
With the economic fallout from the public health measures taken
to mitigate the spread of the SARS-CoV-2 virus and COVID-19
disease, many employers have had to resort to unprecedented
employment actions, including terminating, furloughing, or laying
off employees, and dramatically altering historic employee benefit
plans and perks. The Coronavirus Aid, Relief, and Economic
Security Act (CARES Act) passed by Congress and signed by the
President on March 27, 2020 includes two provisions designed to
help affected employees during these difficult times by
liberalizing the distribution and participant loan
provisions. In this Benefits Brief, we will briefly summarize
the new coronavirus-related distribution provision and the change
in the participant loan rules applicable to most tax-qualified
retirement plans, including 401(k)
