Prior to passage of the CARES Act, retirement plan participant loans were limited to $50,000 or one-half of the participant’s vested account balance.
For a period commencing with the date of the passage of the Act, March 27, 2020, and lasting for 180 days thereafter, the CARES Act doubles the amount that a participant can borrow to the lesser of $100,000 or 100% of the participant’s vested account balance in the plan.
For plan participants with outstanding loans at the time the CARES Act is passed, any payments due through December 31, 2020, can be deferred for one year.
Watch the video above to know more on this.
Also, TheStreet's Retirement Daily Editor Robert Powell speaks with Denise Appleby, CEO of Appleby Retirement Consulting, on the The Retirement Daily podcast, to discuss the provision of the CARES Act.
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