CARES Act - 401k

Distributions:

Up to $100,000 in coronavirus-related distributions (CRDs) can be withdrawn by an individual from the 401k Plan. A CRD is defined as any distribution made on or after January 1, 2020, and before December 31, 2020, to a qualified individual, defined as an individual (or the spouse or a dependent of that individual) who is diagnosed with COVID-19 or SARS-CoV-2 in an approved test; or an individual who suffers related adverse financial consequences, or suffers from other factors as determined by the secretary of the treasury. These distributions will be exempt from the 10% early distribution penalty tax.

In order to request a CRD, participants will need to complete a distribution request form which can be accessed on the participant website- https://my.vanguardplan.com. Participants will need to self-certify on the form that he or she meets the eligibility requirements and have not exceeded the $100,000 distribution limit across all of their eligible retirement plans.

Loans:

Loan Limits: The retirement plan loan maximum for a qualified individual (defined as meeting the COVID-19 or SARs-CoV-2 conditions) will increase to the lesser of $100,000, or 100% of a participant’s vested balance (typically limited to lesser of $50,000 or 50%). This loan limit provision is only in effect for the 180-day period from March 27, 2020 through September 23, 2020. Participants requesting a such a loan would need to complete a Coronavirus Loan Relief Self-Certification Form which can be accessed at the participant website https://my.vanguardplan.com.

Loan Suspensions: Participants with a current loan can suspend payments for up to a year if they qualify as an affected individual. This applies to loans with a repayment due date between March 27, 2020, and December 31, 2020. Interest would continue to accrue during this time. Participants requesting a loan suspension would need to complete a Coronavirus Loan Relief Self-Certification Form which can be accessed at the participant website https://my.vanguardplan.com.

Questions:

Participants who have questions about the distribution or loan process can contact Vanguard/Ascensus or the human resources department using the contact information below:

Vanguard/Ascensus

Plan ID # 223168

Website www.my.vanguardplan.com

Phone: (866) 794-2145 

Danos HR

Email: [email protected] 

Phone: 985-219-3313

Financial Planning

Any questions regarding financial planning should be directed to J. Thomas Hassell & Co. - Financial Advisor

Website: www.hassellwealth.com

Customer Service: (800) 259-9881