The CARES Act is intended to bring relief to those impacted by the coronavirus pandemic. It also has significant implications for your retirement planning. While the Act is aimed at helping you in the short-term, be sure to understand the long-term impacts to your overall financial picture. Talk to a financial professional about your specific situation.

Please note: Contact us to learn more about which CARES Act provisions your plan has adopted.

List of temporary provisions in the CARES Act

Provisions intended to give some financial relief include:
  • Emergency stimulus checks
  • Student loan modifications
  • Relief from evictions due to nonpayment of rent
  • Enhanced unemployment benefits
  • Delayed tax payments
  • Emergency paid leave
  • Emergency sick leave

Think about these forms of relief before taking money from your retirement plan, and potentially negatively impacting your retirement readiness. Decisions like this can be difficult; we're here to explain the options so you can determine what's best for you and your family.

Do you have questions about the specific provisions of the Act?

The CARES Act and your retirement

We recognize that accessing your Retirement Plan Savings could be an option for you at this time. For any COVID-19 related requests, we will waive or reimburse any Nationwide-imposed fees for all loan initiation, distribution or hardship withdrawals for you, if you are in a plan where those fees may apply. This will be effective from March 27 (when the CARES Act was signed) through December 31, 2020.

Please call us if you need to access funds or have questions. Our Solutions Center team members will continue to ensure extraordinary care and are ready to assist you with your COVID-19-related distribution request.


The CARES Act and loans

For new loans, the current retirement plan loan limits are doubled to the lesser of $100,000 or 100% of your vested account balance.

For new and existing loans, payments due in 2020 can be deferred for one year.

This provision only applies to plans who currently allow loans and have adopted this provision of the CARES Act. Check with us to see if your plan allows them.

If you're thinking about taking money from your retirement plan, we have a detailed FAQ for you explaining what you should know.


The CARES Act and retirement savings

The Act will allow for tax-favored withdrawals up to $100,000 and:

  • The additional 10% early withdrawal tax is waived
  • You’ll have up to three years to pay income taxes on the withdrawal
  • You can repay all or a portion of the distribution within three years; the repayments are not subject to contribution limits

The CARES Act and Required Minimum Distributions (RMD)

The CARES Act waives RMD payments for retirement plans and IRAs due in calendar year 2020.

Please note: Contact us to discuss your RMD status.

An extension has been granted to both the SECURE and CARES Act RMD rollover periods for certain distributions from plans and IRAs to August 31, 2020.

  • If you received your RMD from January 1, 2020 - July 2, 2020 you can roll it over at any point up to August 31, 2020.
  • If you received your RMD on July 3, 2020 or thereafter you can roll it over within 60 days from the date of receipt.

Things to remember about your retirement planning

Any loans or withdrawals could impact your retirement nest egg. Never lose sight of the long-term impact they can have on your retirement. History tells us the markets will return, and if you take yourself out of the market now, it may prevent you from benefitting from future upside.

It’s important to weigh all available options to address your immediate financial needs while still being thoughtful about your future financial wellbeing.

We exist to protect people, businesses, and futures with extraordinary care

We know these are difficult times, and we’re here to help if you need access to funds. We will work with you and your employer / Plan Sponsor to help you take advantage of the CARES Act provisions, when offered by your plan. We also will be here to help you make informed decisions about retirement planning.