The Coronavirus Aid, Relief and Economic Security Act (the CARES Act) recently passed by the Congress keeping in mind the current situation of COVID-19 was signed into a law on 27th March 2020 by President Trump. This act provides assistance to American industries, businesses, workers, and families. It has also made some provisions for employee benefits and Executive Compensation. It includes
Retirement Plan Distributions – According to this Act, the participants that have an eligible retirement plan and are affected by COVID-19, are permitted to take distributions related to the Coronavirus of up to $ 100,000. This is allowed only if their plan permits this kind of distribution, without having to go through any negative consequences that have the potential of emerging. Those potential consequences are mentioned in detail in the Act hrtech news.
Employer Payment of Student Loans – Any qualified student loan of an employee on the tax-free basis is permitted to be paid by the employer on principal or interest. These payments will not be included in the gross income of the employee and may be paid to either of the two – lenders or employees. There is a limit of up to $5,250 that is applied.
Minimum Required Contributions – Under this act, a provision for extension of deadlines of minimum required contributions to pension plans defined by a single-employer is made. The date has been shifted to 1st January 2021 from the calendar year 2020. There will be an accrued interest till the date of payment.
Several other subject matters like Use of Pre-2020 AFTAP, Retirement Plan Loans, Postponement of ERISA Deadlines and various others are addressed under this Act. There are also certain limits to employee compensation that are also mentioned under this act.
How beneficial and supporting this law will prove to be? Find out more on Hrtech cube that posts regular updates like these on its publishing site. Hrtech cube is the site you need to keep an eye on to know anything that is going on in the industry of Hrtech.