This month we shared a notice with 403(b) Retirement Plan participants about the CARES Act provisions that offer relief options to those affected by COVID-19.
These financial relief options are designed to provide participants access to retirement plan funds in the event they experience financial hardship due to COVID-19.
The following provisions are available under the GW 403(b) retirement plan:
- CARES Act distributions: Waiver of penalties and tax withholding on qualified withdrawals. Distributions are still subject to taxation.
- CARES Act loans: Plan loan limits have been increased and an option to defer loan payments has been added.
Please view the notice linked above for eligibility information and contact information for Fidelity and TIAA financial consultant. It’s important to understand the impact of a withdrawal or loan. You will have to save more in the future in order to replenish any distribution and/or loan.
Who Is Eligible?
You are considered eligible to take CARES Act distributions or loans from your GW 403(b) plan if any of the below conditions are met:
- You, your spouse or your dependent has been diagnosed with COVID-19, or
- You suffer certain financial consequences due to COVID-19, including, as a result of quarantine, reduced work hours, or cannot work due to lack of child care as a result of COVID-19.
If you choose to take a CARES Act distribution or loan, you will be asked to self-certify that you meet the eligibility requirements.
Learning Resources
Fidelity and TIAA have provided the following articles and webinars highlighting important considerations prior to making a withdrawal from your retirement account:
