Covid_ Hardship Withdrawal (Spouse laid off/terminated) & (loans)

[RRivera]

1) If an employee already has an outstanding loan, can they get another loan during this crisis?

               Our current plan documents only allow 1 loan, do we need to do an amendment?

2) If this same employee takes out a loan, can they stop their loan paycheck deductions on one or both loans for loans for 1 year as per the new CARES ACT?

3) If an employee wants a hardship withdrawal to cover expenses incurred as a result of this corona virus, what back up documentation do we need from them to prove this?  

4)Is an employee eligible for a hardship withdrawal (to cover expenses incurred as a result of this corona virus) if they are still working full time hours at the same rate of pay?

5) Can an employee request a covid hardship based on a spouse being terminated/laid off and it impacts the monthly income for the household? 

[Mike Preston]

11 hours ago, RRivera said:

1) If an employee already has an outstanding loan, can they get another loan during this crisis?

               Our current plan documents only allow 1 loan, do we need to do an amendment?

2) If this same employee takes out a loan, can they stop their loan paycheck deductions on one or both loans for loans for 1 year as per the new CARES ACT?

3) If an employee wants a hardship withdrawal to cover expenses incurred as a result of this corona virus, what back up documentation do we need from them to prove this?  

4)Is an employee eligible for a hardship withdrawal (to cover expenses incurred as a result of this corona virus) if they are still working full time hours at the same rate of pay?

5) Can an employee request a covid hardship based on a spouse being terminated/laid off and it impacts the monthly income for the household? 

1. Yes, if the plan sponsor wants to make it so.  An amendment will be required by 12/31/2022 that conforms the plan to the plan sponsor's wants.

2. Yes, if the plan sponsor wants to make it so.  An amendment will be required by 12/31/2022 that conforms the plan to the plan sponsor's wants.

3. None, a signed statement from the participant stating that the participant meets the criteria is sufficient.

4. Yes, if the plan participant signs a statement stating that the participant meets the criteria.

5. Yes, if the plan participant signs a statement stating that the participant meets the criteria.