Loans and Withdrawals From Retirement Plans

As a participant in the Brandeis University Defined Contribution Retirement Plan for faculty, professional and administrative staff, or Brandeis University Defined Contribution Retirement Plan for nonexempt employees, you have options available to you under the Coronavirus Aid, Relief and Economic Security (CARES) Act.

The act was signed into law by President Trump on March 27 and provides options for you to consider as you navigate financial decisions in the coming months. Brandeis University has chosen to adopt the following CARES Act provisions for our retirement plans:

In addition to these CARES Act relief measures, the deadline for 2019 Individual Retirement Account contributions has been extended from April 15 to July 15, 2020.

As always, we recommend reaching out to your financial consultant to review your current situation — along with short- and long-term financial goals — before making any decisions. Keep in mind: Any changes as a result of the CARES Act should only be made if necessary and related to a COVID-19 hardship. Taking significant amounts of money out of your retirement account now may impact your future retirement savings goals.

Upcoming Deadline for CARES Act Loans

The availability of CARES Act Loans will expire on September 22, 2020. The CARES Act permitted plan sponsors to increase the maximum loan limit for qualified participants to the lesser of 100% of the participant’s vested account balance or $100,000 (reduced by the highest outstanding loan balance in the past 12 months) from all plans of the employer and any related employer from March 27 – September 22, 2020.

All CARES Act Loan requests must be initiated and in good order by 4:00 p.m. ET (unless the market closes sooner) on September 22, 2020.

What Does This Mean for You?

We know that keeping you and your family healthy and safe amid the challenges surrounding COVID-19 needs to be your first priority. That’s why we’re working with our retirement plan partners at Fidelity and TIAA to break down the provisions in the act to make them easier to understand, so you can determine if they may be right for you.

Retirement Plan Withdrawals and Loans

Who Is Eligible?

You are considered eligible to take distributions/loans from your retirement plan if any of the below conditions are met:

How Can the Act Help if You Are Eligible?

Penalties and withholding are waived for qualified distributions from retirement plan accounts
Retirement plan loan limits are increased
Suspension of required minimum distributions

To help provide relief for those required to take a required minimum distribution, the CARES Act allows you to cancel your 2020 RMD payments and restart them in 2021.

Other Changes to Consider

How to Get Help

Fidelity

TIAA