Topic Archive: Coronavirus

Can We Allow a Distribution for a Coronavirus-Related Hardship?

DWC | 03/31/20

Facts

Some of our employees are dealing with financial challenges due to the coronavirus situation, and they are asking whether they can access their 401(k) accounts.  Our plan allows for loans and for in-service distributions at age 59 ½, but some of these employees are younger than that.  As a plan sponsor, I’ve always felt strongly that our 401(k) plan was a tool to save for retirement; however, these are unprecedented times, and I’d like to find ways to support my employees’ needs.

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DWC News Update | The CARES Act: Federal Coronavirus Relief

DWC | 03/30/20

On Friday afternoon, March 27th, Congress passed, and the President signed, the Coronavirus Aid, Relief, and Economic Security (CARES) Act - sweeping legislation intended to provide much-needed relief due to the coronavirus public health emergency.  At nearly 1,000 pages in total, the legislation covers a lot of ground in a many areas.  With respect to company-sponsored retirement plans, the relief focuses on four areas:

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How Do We Stop Our Discretionary Matching Contribution?

DWC | 03/26/20

Facts

My company sponsors a 401(k) plan that provides for a discretionary matching contribution, which we deposit each pay period along with employee deferrals.  Given the economic uncertainty, I’m focused on doing what I can to ensure adequate cash flow to maintain operations, including making payroll.  That might mean we make the decision to suspend the matching contributions.

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Can We Suspend our Safe Harbor Contribution Mid-Plan Year?

DWC | 03/24/20

Facts

Given the current uncertainty in the world economy and the unknown ongoing affects of coronavirus, I’m looking at all financial obligations for our company, and for opportunities to reduce risk.  We currently sponsor a 401(k) plan for our employees and provide a safe harbor contribution equal to 3% of employee compensation.

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