401K withdrawal CARES discretion

[JRSP533]

Wondering if all plans administrators and employers will cooperate and increase loan limits and permit withdrawals up to $100k. this isn’t discretionary is it? 
 

seems to me a bad decision not to allow these withdrawals but just wondering what the consensus is here and when plans will start to integrate the new rules with all the moving parts. 
 

 

 

[Bird]

My feeling is that if a plan already allows loans and hardships our clients will extend those provisions.  Some might add them.  I'll be careful to explain that it is not required.

I'll get on my stump and say I'm not so sure it is the best public policy to look to tap into retirement savings whenever a crisis arises.  I'm not saying I have a better answer (and probably would have to cave in if forced to vote on such stuff) but something about "we are shutting everything down and you can take money out of your retirement to get by" doesn't sit right with me.  I get it, this is extraordinary and at the end of the day probably concede that it's necessary, but the knee-jerk reaction is troublesome.  I generally don't like the idea of making up rules as you go along.  FWIW

[RPAS]

It is up to the plan sponsor to offer this feature, it is not required, however. 

[Pam Shoup]

Yes discretionary.  We will be recommending to plans that already to have a loan provision to add the Caronavirus loan provisions.  For the Caronavirus distributions, this comes more under the inservice rules so for those plans that currently permit inservice distributions, we are recommend that they permit the Caronavirus distributions.

[JRSP533]

Thank you. I’m super hopeful for an in service withdrawal option. We currently offer hardship and primary residence withdrawals. 
 

we also offer genera purpose loans as well to which I have an o/s balance of $24k. They do have rules currently that $50k or 50% are the maximum but that any outstanding loan balance from the last 12 months would be decay red from available a new loan. 
 

So in my example, $50k- $25k is only $25 & available after paying off a $25 k loan so no assistance there. Wondering if the math would be the same when they increase loan amount to $100k available?  PS, my balance excluding the outstanding loan is $229k. 

[JRSP533]

What are the odds my provider allows for a withdrawal?  If no withdrawal, would the loan amount likely be $75k and would I need to pay off the existing $25k loan first?  Fully vested btw. 
 

just curious what I should anticipate and would be really grateful for $.02 from any practitioners.