CARES Act 401(k) Plan Relief Reminders

Earlier this year, the Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law. The provisions of this legislation provide relief for many retirement plan participants, including those in the NRECA-sponsored 401(k) Pension Plan.

In-service withdrawals
Eligible participants at cooperatives that did not opt out of offering the CARES Act withdrawal opportunity through the 401(k) Plan may take one in-service withdrawal from their 401(k) account by December 30, 2020. Under this temporary withdrawal provision, eligible participants can elect to make withdrawals up to the lesser of $100,000 or their total account balance (excluding base contributions made by the co-op). To take a withdrawal, participants must have NRECA’s CARES Act Distribution Attestation & Withdrawal Form completed and in good order to NRECA no later than December 28, 2020. This will ensure the withdrawal can be processed by the federally mandated deadline.

Loan fee waiver
If your co-op allows loans as part of its plan features, NRECA is waiving the $100 loan origination fee for participants initiating a loan from their 401(k) account. NRECA is extending this relief to 60 days past the end of the coronavirus public health emergency. Messaging on the 401(k) loans page on the Employee Benefits website has been updated to reflect this extension.

Questions
If you or your co-op’s employees have questions about these relief measures, please contact your local field representative or the Member Contact Center at 866.673.2299. Representatives are available Monday through Friday, 7 am to 7 pm, Central time. Participants who wish to discuss these options as part of their larger retirement planning efforts should contact the Personal Investment & Retirement Consulting team at 866.673.2299, option 6. Members of this team are available Monday through Friday, 7 am to 4:30 pm, Central time or via email at pirc@nreca.coop.