Coronavirus Aid, Relief and Economic Security Act (CARES Act)
The CARES Act is intended to bring relief to those impacted by the coronavirus pandemic. It also has significant implications for your retirement planning. While the Act is aimed at helping you in the short-term, be sure to understand the long-term impacts to your overall financial picture. Talk to a financial professional about your specific situation.
Please note — Contact us to learn more about which CARES Act provisions your plan has adopted.
List of temporary provisions in the CARES Act
Provisions intended to give some financial relief include:
- Emergency stimulus checks
- Student loan modifications
- Relief from evictions due to nonpayment of rent
- Enhanced unemployment benefits
- Delayed tax payments
- Emergency paid leave
- Emergency sick leave
Think about these forms of relief before taking money from your retirement plan, and potentially negatively impacting your retirement readiness. Decisions like this can be difficult; we're here to explain the options so you can determine what's best for you and your family.
If you have questions about the specific provisions of the Act, you can go to
The CARES Act and your retirement
We recognize that accessing your Retirement Plan Savings could be an option for you at this time. For any COVID-19 related requests, we will waive or reimburse any Nationwide-imposed fees for all loan initiation, distribution or hardship withdrawals for you, if you are in a plan where those fees may apply. This will be effective from March 27 (when the CARES Act was signed) through September 30, 2020.
Please call us if you need to access funds or have questions. Our Solutions Center team members will continue to ensure extraordinary care and are ready to assist you with your COVID-19-related distribution request.
For new loans, the current retirement plan loan limits are doubled to the lesser of $100,000 or 100% of your vested account balance.
For new and existing loans, payments due in 2020 can be deferred for one year.
This provision only applies to plans who currently allow loans and have adopted this provision of the CARES Act. Check with us to see if your plan allows them.
If you're thinking about taking money from your retirement plan, we have a detailed FAQ for you explaining what you should know.
The Act will allow for tax-favored withdrawals up to $100,000, and
- The additional 10% early withdrawal tax is waived
- You’ll have up to three years to pay income taxes on the withdrawal
- You can repay all or a portion of the distribution within three years; the repayments are not subject to contribution limits
The CARES Act waives RMD payments for retirement plans and IRAs due in calendar year 2020.
Please note: Contact us to discuss your RMD status.
An extension has been granted to both the SECURE and CARES Act RMD rollover periods for certain distributions from plans and IRAs to August 31, 2020. Please see the below chart regarding the new eligibility periods.
|RMD Receipt Date||Can I roll over my RMD?||Rollover Eligibility Period|
|January 1, 2020 – July 2, 2020||Yes||At any point up to August 31, 2020|
|Beginning July 3, 2020||Yes||Within 60 Days from Date of Receipt|
Things to remember about your retirement planning
Any loans or withdrawals could impact your retirement nest egg. Never lose sight of the long-term impact they can have on your retirement. History tells us the markets will return, and if you take yourself out of the market now, it may prevent you from benefitting from future upside.
It’s important to weigh all available options to address your immediate financial needs while still being thoughtful about your future financial wellbeing.
We exist to protect people, businesses, and futures with extraordinary care
We know these are difficult times, and we are here to help if you need access to funds. We will work with you and your employer/Plan Sponsor to help you take advantage of the CARES Act provisions, when offered by your plan. We also will be here to help educate you so you can make informed decisions regarding your retirement planning.