having a job offer rescinded or start date for a job delayed due to COVID-19.having pay or self-employment income reduced due to COVID-19 or.closing or reducing hours of a business that they own or operate due to COVID-19.being unable to work due to lack of childcare due to COVID-19.being quarantined, furloughed or laid off, or having work hours reduced due to COVID-19. experiences adverse financial consequences as a result of the individual, the individual’s spouse, or a member of the individual’s household (that is, someone who shares the individual’s principal residence):.is diagnosed, or whose spouse or dependent is diagnosed with COVID-19 by certain approved tests or.Under the expanded definition provided under Notice 2020-50, “qualified individual” is now defined as an individual who: Notice 2020-50 expands the definition of “qualified individual” (an individual eligible for CRDs or CR Loan Relief) to take into account additional factors such as reductions in pay, rescissions of job offers, and delayed start dates with respect to an individual, as well as adverse financial consequences to an individual arising from the impact of COVID-19 on the individual’s spouse or household member. Discussion of the material information contained in the notice is provided below.Įxpanded Definition of “Qualified Individual” Eligible for CRDs and CR Loan Relief The notice expands, and in some cases modifies, previous guidance issued by the IRS regarding CRDs and CRD Loan Relief discussed in our recent blog. On Friday, June 19, 2020, the IRS released Notice 2020-50 which provides additional guidance regarding the coronavirus-related distributions (“CRDs”) and coronavirus-related loans and loan repayment delays (“CR Loan Relief”) made available to certain retirement plan participants affected by COVID-19 under the CARES Act.
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