On March 27, 2020 the CARES (Coronavirus Aid, Relief, and Economic Security) Act was signed into law to address economic impacts associated with COVID-19.
1. Due to the financial impact of COVID-19, the CARES increases the maximum loan amount to $100,000 (currently $50,000) and permits loans of 100% (currently 50%) of the present value of the participant's account. To determine if you qualify for a Coronavirus-Related Distribution, please visit the COVID-19 resource page.
2. The CARES Act also allows a qualified individual with an outstanding loan from the 457 Plan or 401(k) Plan to extend the due date for any loan repayments that occur during the period March 27, 2020 - December 31, 2020.
Please visit the COVID-19 resource page for more information, including special CARES Act forms.
Note: The following videos do not reflect the changes included in the CARES Act.
Taking a loan from your Deferred Compensation Plan account may not always be the right choice though. Before deciding to take a loan from your account, make sure you understand how taking a loan can affect your retirement savings.
Learn about the rules regarding taking a loan, including eligibility, loan fees, repayment rules, defaulting on a loan and much more.
Understand how loan repayments are made if you are on a leave of absence, with or without pay, and how to continue your loan repayments.
If you still have questions, or would like more information about the Plan, register to attend the DCP Basics Seminar or call the Plan's Client Service Department at 212.306.7760.