In addition to assisting business owners, the March 27, 2020 CARES (Coronavirus Aid, Relief and Economic Security) Act also includes changes to retirement plans. These provisions could impact your retirement planning. Some of the changes relate to:
- Defined benefit plans
- Required Minimum Contributions (RMCs) due date
- Treatment of the plan’s adjusted funding target attainment percentage
- Extending some pension plan rules
- Defined contribution plans
- Early withdrawals for Corona-Related Distributions (CRDs)
- 2020 Waiver of Required Minimum Distributions (RMDs)
- Expanded U.S. Department of Labor authority to postpone certain deadlines.
Contact your financial adviser for details on how the CARES Act could impact your retirement plans. Note that changes to your retirement planning could in turn lead to necessary changes in your estate plan.