As people across the U.S. reacted quickly to the COVID-19 pandemic, Congress also passed the Coronavirus Aid Relief and Economic Security (CARES) Act, which was signed into law on March 27, 2020. This legislation includes an adjustment to the Hardship Distribution provisions that will benefit retirement plan participants during these challenging and unprecedented times.
Coronavirus-related Distributions for Retirement Plans During the COVID-19 Pandemic
Up to $100,000 can be withdrawn, without incurring the 10% early withdrawal penalty, from an IRA or qualified retirement plan as a Coronavirus-related Distribution (CRD) made in 2020 if the plan participant (or their spouse/dependent) is diagnosed with COVID-19 or experiences adverse financial consequences due to the pandemic.
Key Provisions and Additional Tax Relief for Retirement Plan Participants:
- Distributions will not be subject to the 20% withholding and notice rules
- Distributions may be repaid to an eligible retirement plan as a rollover contribution during the three-year period following the distribution
- Distributions will be taxed over a three-year period, unless the participant elects otherwise
- Increased limits on qualified plan loans
- Temporary suspension of required minimum distributions (RMDs) for the 2020 calendar year
How to Access a Coronavirus-related Distribution Form:
- Step 1: Go to Service Forms
- Step 2: Select the CARES Act Annuity Request Form or the Mutual Fund Account CARES Act Request Form
- Step 3: To download either form you will need to sign in to your Security Benefit account
Participants can also contact their Financial Professional or our Service Center at 800.888.2461.
Coronavirus-related Distribution Eligibility
In order to be considered eligible for the distribution and loan relief provided in the bill, participants must meet at least one of the criteria below:
- Diagnosed with the virus SARS-CoV-2 or with coronavirus disease 2019 (COVID-19) by a test approved by the Centers for Disease Control and Prevention
- A spouse, dependent or member of the participant’s household is diagnosed with SARS-CoV-2 or COVID-19
- Experienced adverse financial consequences as a result of COVID-19:
- being quarantined,
- being furloughed or laid off or having work hours reduced,
- being unable to work due to lack of child care
- closing or reducing hours of a business owned or operated by the individual
- or other factors as determined by the Secretary of the Treasury
Options when completing a CARES Act Request Form:
- Request a Coronavirus-Related Distribution (CRD)
- Request a loan
- Request a loan repayment delay
- Request a Required Minimum Distribution (RMD) payment delay
CARES Act Request Form Submission
All CARES Act Request Forms will need to be submitted to Security Benefit via the specific instructions and mailing addresses on each form:
|Annuity Accounts||Custodial Accounts|
Fax to: 785.368.1772
Fax to: 816.701.7626
Expedited or Overnight
Security Benefit remains committed to you during these challenging times. We are here to answer questions and help you continue your path To and Through Retirement®.
For more information, contact your financial professional or call us at 800.888.2461.