Prudential: Regulatory Compliance - CARES Act (COVID 19)
Edward Johnson, PMP®, CSM®
March 27
The CARES Act contains several provisions affecting retirement plans in the area of distributions and loans due to the impact and effects of COVID-19 and includes a temporary waiver of Required Minimum Distributions, the ability to request a Coronavirus-Related Distribution or Loan, and the suspension of loan repayments. The bill contains a new distribution from a plan or IRA called a %u201Ccoronavirus-related distribution%u201D (CRD). The provisions are similar (but not identical) to relief provided for natural disasters. Relief. The 10% early withdrawal penalty that otherwise applies to early distributions is waived for CRDs. Unless the individual elects otherwise, a CRD is included in gross income ratably over three years.
This required the internationally dispersed team to develop solutions across 5 different platforms, including website and mobile applications. The engagement required the highest level of coordination with the the business, legal and other departments within the organization to ensure speed and accuracy to the response brought about for this global pandemic and the incurred economic impacts.