The CARES Act of 2020: Key COVID-19 Relief Provisions Impacting Your Employer-Sponsored Benefit Plans (US)
The Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, enacted and sent to the President for his signature on March 27, 2020, is bipartisan legislation providing more than US$2 trillion in relief for both companies and families affected by the coronavirus disease 2019 (COVID-19) pandemic. It includes a number of provisions designed to help employers and employees contend with a scaled-back workforce and other economic fallout. In this update, we take a close look at some of the provisions that relate to retirement plans and the payment of employment taxes. Additional taxation-related provisions are covered in a separate client alert. Section 2202. Special Rules for Use of Retirement Funds These new rules provide individuals affected by COVID-19 access to retirement savings that under current law would not be accessible or would be subject to penalty if withdrawn. Tax-Favored Withdrawals From Retirement Plans This provision waives the 10% early withdrawal tax penalty th...