NRECA Employee Benefits Weekly

CARES Act Distribution Attestation & Withdrawal Form Now Available

Posted on Posted in Retirement Benefits

As announced on April 15, 2020, the Coronavirus Aid, Relief and Economic Security (CARES) Act created the opportunity for NRECA-sponsored 401(k) Pension Plan participants, who meet federal eligibility requirements, to take one special in-service withdrawal from their 401(k) account between June 1 and December 30, 2020.

If your cooperative has decided to provide its employees with the ability to make a withdrawal under this provision, participants must complete NRECA’s CARES Act Distribution Attestation & Withdrawal Form to initiate a withdrawal.

Form overview
The form provides participants with detailed instructions on how to complete it. However, you may wish to provide participants seeking a withdrawal with the following information.

  • Participants must attest that they meet one (or more) of the federal eligibility criteria as stated on the form.
  • Participants may select one (or more) contribution sources from which the distribution can be made (excepting employer base contributions); however, they cannot indicate specific investments.
  • A 10% tax will be automatically withheld unless the participant elects to waive it.
  • Married participants must have their spouse review and sign the form’s spousal waiver section in the presence of a notary public.
  • Participants must return the form to their co-op’s benefits administrator for review and signature before it can be returned to NRECA.

Important reminder and participant resource
Reminder, if your co-op wants to opt out of the CARES Act withdrawal provision, please contact your field representative as the necessary documentation needs to be finalized and returned to NRECA no later than May 11, 2020. If your co-op has decided to provide the withdrawal provision to its employees, use the optional participant notification template to notify participants. NRECA recommends having your benefits administrator notify your co-op’s employees within 60 days of the decision to offer the withdrawal provision.

If you have additional questions about this withdrawal opportunity, please reach out to your co-op’s field representative.

Scroll to top