The Impact on Your 401k · Academy of Dental Management Consultants (ADMC), and member of ADMC...
14
www.e2efinancial.com 5555 Glenridge Connector • Ste 200 • Atlanta, Georgia 30342 • Direct: 678-664-9745 • Fax: 404-793-0377 • [email protected] The Coronavirus Aid, Relief, and Economic Security Act (CARES) Act: The Impact on Your 401k
Transcript of The Impact on Your 401k · Academy of Dental Management Consultants (ADMC), and member of ADMC...
www.e2efinancial.com5555 Glenridge Connector • Ste 200 • Atlanta, Georgia 30342 • Direct: 678-664-9745 • Fax: 404-793-0377 •
The Coronavirus Aid, Relief, and Economic
Security Act (CARES) Act:
The Impact on Your 401k
www.e2efinancial.com5555 Glenridge Connector • Ste 200 • Atlanta, Georgia 30342 • Direct: 678-664-9745 • Fax: 404-793-0377 •
Agenda
1. Introduction of the panelists
2. Review of the CARES Act for retirement plans and IRAs
3. Discussion about the CARES Act provisions and their implementation
4. Questions
5. Final thoughts, action plan and offer from E2E Financial
Nick WestmorelandPartner/Vice President
of Business DevelopmentERISA Services
-Over 10 years of experience in customizing qualified retirement plansfor small to medium sized businesses.
-Has experience and expertise to maximizetax savings for business owners
–Helps create retirement benefits that help clients recruit and retain top talent.
Kristie FarmerDirector of Client Services
ERISA Services
-Over 26 years of experience in the retirement plan industry
-Serves all facets of sales, third-party administration services, consulting, research, and compliance.
-Serves as an additional strategic point of contact for advisors and clients to ensure an exceptional client experience.
Michael JohnsonRegional Vice President
John HancockRetirement Services
-More than 18 years of experience inFinancial services
-Responsible for sales and relationship development with financial representatives and plan consultants in Atlanta, North GA, and Chattanooga, Tennessee.
-M.B.A. from Kennesaw State University
-B.B.A. from the University of Georgia.
Andrés M. RomeroChFC, CFP
Founder/CEOE2E Financial, LLC
-Advising dentists, doctors, women in life transition, and their families since 1993.
-E2E focuses on financial planning, investment planning, estate planning, benefits planning, and succession planning needs.
-Director of Sponsoring Partners and board member of The Academy of Dental Management Consultants (ADMC), and member of ADMC since 2005
-Speaker at various dental schools, dental study clubs, & webinars
®
CARES Act was signed into law on March 27, 2020
• Highlighted in this webinar are the changes that may impact retirement plans and Individual Retirement Accounts. (IRAs)
• This webinar is intended for plan sponsors of 401k plans and other qualified retirement plans
• Please be aware as is the case with new emergency legislation, many of the details are still being worked out
Distributions
The CARES Act allows for a new coronavirus-related distribution type from an employer sponsored 401(k), 403(b), or governmental 457(b) retirement plan or IRA, which is similarto the relief typically provided for natural disasters.
Key provisions include:• The maximum amount available to withdraw is $100,000 per participant• Participants may be permitted to recontribute the amount within 3 years without regard to
contribution limits.• The mandatory 20% withholding and the requirement to provide a 402(f) notice is waived.
Standard federal withholding is 10% unless the participant opts out by completing a Form W-4P.
• The withdrawal is not subject to the 10% additional income tax for early distributions.• Income attributable to the distribution can be spread out over three years for tax purposes.
Distributions…continued
In order to qualify, distributions must be made before December 31, 2020 to:• A participant, their spouse or dependent diagnosed by a test approved by the
Centers for Disease Control and Prevention (CDC) with coronavirus or• A participant who experiences adverse financial consequences by results of
the virus, including loss of wages.
The plan administrator of an eligible retirement plan may rely on an employee’s certification that the employee satisfies the conditions.
Plan Loans
• IRS plan loan limits for participants requesting new loans have been increased to 100% of vested account balance, up to $100,000, for the 180 days following the date of enactment.
• Plan loan payments due between the date of enactment and 12/31/2020 are delayed for one year, and this same time period may be disregarded from the loan’s term. Subsequent payment due dates will also be adjusted accordingly, and interest will continue to accrue during the delay period.
In order to qualify, participants must certify they have experienced specificadverse financial consequences from the coronavirus pandemic or they, their
spouse or dependent have been diagnosed with coronavirus by a test approved by the CDC.
Required Minimum Distributions (RMDs)
• RMDs for defined contribution plans and IRAs have been waived for 2020. The waiver also includes 2019 RMDs due by April 1, 2020 for those who have not yet received their first distribution if they turned 70 ½ in 2019.
• No waiver is available for defined benefit (DB) plans.
Defined Benefit (DB) Funding• All single-employer minimum required contributions, including quarterly
contributions due during the 2020 calendar year may be extended until January 1,2021 with interest for the deferred contributions.
Q&A
Action Plan
• Do you wish to implement these CARES Act options in to your retirement plan? You must adopt these changes by the end of the 2022 plan year for private sector plans
• If you wish to implement the CARES Act changes in to your plan, reach out to your Third Party Administrator (TPA)
• Need more info on the latest on COVID-19 business info. Check out: https://www.e2efinancial.com/covid-19-resource-center
www.e2efinancial.com5555 Glenridge Connector • Ste 200 • Atlanta, Georgia 30342 • Direct: 678-664-9745 • Fax: 404-793-0377 •
Offer from E2E Financial
• One hour complementary consultation to review financial coaching and benchmark your 401k Plan
www.e2efinancial.com5555 Glenridge Connector • Ste 200 • Atlanta, Georgia 30342 • Direct: 678-664-9745 • Fax: 404-793-0377 •
Thank you
Disclosures
This information was developed as a general guide to educate plan sponsors, but is not intended as
authoritative guidance or tax or legal advice. Each plan has unique requirements, and you should
consult your attorney or tax advisor for guidance on your specific situation. In no way does advisor
assure that, by using the information provided, plan sponsor will be in compliance with ERISA
regulations.
Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Independent Advisor Alliance (IAA), a registered
investment adviser. E2E Financial, LLC and Independent Advisor Alliance are not owned or
controlled by LPL Financial.
