On June 19, 2020, the IRS released Notice 2020-50, which provides additional guidance and relief for retirement plan participants taking coronavirus-related distributions and loans under the Coronavirus Aid, Relief, and Economic Security Act (the \u201cCARES Act\u201d).\u00a0 Under the CARES Act, \u201cqualified individuals\u201d may take coronavirus-related distributions of up to $100,000 from their eligible retirement plans without being subject to the 10% additional tax on early distributions.\u00a0 In addition, a coronavirus-related distribution can be included in income ratably over the three-year period commencing with the year of distribution and the individual taking the distribution has three years to repay the distribution to the plan, or roll it over to an Individual Retirement Account (\u201cIRA\u201d) or other qualified retirement plan, with the effect of reversing the income tax consequences of the distribution.\u00a0 In addition, the CARES Act allows plans to suspend loan repayments due from March 27, 2020 through December 31, 2020 and further allows for an increase in the dollar amount on loans made between March 27, 2020 and September 22, 2020 from $50,000 to $100,000.\u00a0 Notice 2020-50 expands the definition of qualified individuals under the Act and provides additional, clarifying guidance regarding coronavirus-related distributions and loans.<\/p>\n
Expansion of the Definition of \u201cQualified Individual\u201d<\/strong><\/p>\n Under the original language of the CARES Act, a qualified individual included the following persons:<\/p>\n