Coronavirus Related Loan

[Dougsbpc]

As many probably remember, initially it was indicated that a participant could take up to a $100,000 participant loan through the Cares Act. It was also described that the repayment could be deferred for up to a year. Then after reviewing closer, the year was to be no later than January 1, 2021. In any event, there was confusion on this. I thought I read something about how a repayment will be considered timely if it was made on or prior to February 28, 2021. Did anyone else remember this? I cannot seem to find anything on it. 

Thanks!

[RatherBeGolfing]

On 6/7/2021 at 4:08 PM, Dougsbpc said:

As many probably remember, initially it was indicated that a participant could take up to a $100,000 participant loan through the Cares Act. It was also described that the repayment could be deferred for up to a year. Then after reviewing closer, the year was to be no later than January 1, 2021. In any event, there was confusion on this. I thought I read something about how a repayment will be considered timely if it was made on or prior to February 28, 2021. Did anyone else remember this? I cannot seem to find anything on it. 

Thanks!

Guidance can be found in Notice 2020-50.

In a nutshell, payments scheduled between 3/27/20 - 12/31/20 can be suspended for a year, but payments scheduled after 12/31/20 still have to be made as scheduled.  There are lots of ways you can accomplish this, ranging from simple to complicated, and you don't have to use the example in the guidance.

[Dougsbpc]

I think there might have been other relief after Notice 2020-50 that may have extended repayments further.