CARES Act Provisions Affecting Retirement Plans
The Coronavirus, Aid, Relief and Economic Security (CARES) Act was signed into law on March 27, 2020, and some of the provisions apply to MSU retirement plans. The CARES Act permits qualified coronavirus-related distributions (CRD) from MSU retirement plans. We understand that you may need to assess your finances and potentially access savings to manage through this challenging period. These new provisions allow you to do the following:
- You can make distributions up to $100,000 as available in your account;
- The act waives the 10% early withdrawal penalty and 20% withholding;
- You have the option to elect to pay taxes due over a three-year period; and
- You can recontribute the withdrawn amount within three years regardless of that year’s contribution limit.
Individuals must meet one of the following qualifying conditions to initiate a coronavirus-related distribution:
- Any individual who has been diagnosed with COVID-19 by a test approved from the Centers for Disease Control and Prevention
- Any individual who has a spouse or dependent who has been diagnosed with COVID-19
- Anyone who suffers financial consequences as a result of quarantine, employment furlough, lay-offs, reduced work hours or cannot work due to lack of childcare as a result of coronavirus
- Anyone who experiences a financial loss to an individually owned or operated business that is caused by a closing or reduction of hours due to coronavirus
How Do I Initiate a Coronavirus-Related Distribution or Learn More?
To initiate a distribution or learn more about this special withdrawal option, and other provisions of the CARES Act, contact your retirement vendor directly:
- Fidelity: call 800-343-0860 or learn more on the Fidelity Website
- TIAA: call 800-842-2252 or learn more on the TIAA Website
Please contact Fidelity or TIAA directly with your questions about the CARES Act or to initiate a distribution using the contact info above.