On March 27, 2020, the House of Representatives passed the
Coronavirus Aid, Relief and Economic Security Act (CARES Act). The
Senate passed the Act on March 25, 2020, and the president is
expected to sign the Act into law shortly. The Act is the largest
stimulus bill in American history and contains a number of
provisions that affect an employer's retirement plans and
executive compensation arrangements, as summarized below.
Impact on Retirement Plans
Access to Retirement Plan Account Funds
The Act provides a number of new, optional ways for plan
participants to access their retirement accounts in light of the
coronavirus pandemic, including:
- An increased limit on new loans taken from the plan (replacing
$50,000 with $100,000 and 50 percent with 100 percent account
balance limit);
