Blog Logo
Blog Logo

Edward A. Wodarczyk

Of Counsel

Contact information

    BOOKMARK SHARE
    View All News & Insights
    BACK TO Edward A.’S PROFILE

    IRS Broadens Eligibility for COVID-19 In-Service Distributions and Participant Loans Under DC Plans

    Edward A. Wodarczyk, Esq., ewodarczyk@tuckerlaw.com, (412) 594-3920

    On June 19, the IRS issued Notice 2020-50.  It expounds on the rules for in-service withdrawals and participant loans for defined contribution (DC) plans for participants adversely affected by the COVID-19 pandemic.  The Notice also broadens the category of eligible participants to include those who experience adverse financial consequences as a result of:

     

    1. the individual having a reduction in pay (or self-employment income) due to COVID-19 or having a job offer rescinded or start date for a job delayed due to COVID-19;
    2. the individual’s spouse or a member of the individual’s household being quarantined, being furloughed or laid off, or having work hours reduced due to COVID-19, being unable to work due to lack of childcare due to COVID-19, having a reduction in pay (or self-employment income) due to COVID-19, or having a job offer rescinded or start date for a job delayed due to COVID-19; or
    3. closing or reducing hours of a business owned or operated by the individual’s spouse or a member of the individual’s household due to COVID-19.

    July 14, 2020

    Serving our clients successfully since 1900

    The same attributes that have anchored over a century of success are still our guiding principles today.

    Stay up-to-date on the latest News & Insights by subscribing to our alerts

    Enter your email address below and be notified when we post new information.