IRS Releases Notice 2020-50: Expansion on Qualified Individuals
The IRS has recently released Notice 2020-50 regarding guidance for Coronavirus-related distributions and loans from retirement plans under the CARES Act. This new guidance expands the definition of qualified individuals to include the following:
An individual who is diagnosed, or whose spouse or dependent is diagnosed, with COVID-19 by a CDC approved test
An individual who experiences adverse financial consequences as a result of the individual, the individual's spouse, or a member of the individual's household:
Being quarantined, furloughed, laid off, or having hours of work reduced due to COVID-19
Lack of childcare due to COVID-19
Reduction of hours or closing a business that they own due to COVID-19
Income reduction due to COVID-19
Job offer delayed or revoked due to COVID-19
Please remember that these provisions provided under the CARES Act are optional to plan sponsors.
Please feel free to reach out to us if you have any questions or concerns.