"Has anyone heard whether IRS is going to provide guidance regarding RMD notices that were sent for 2020? I know that IRS provided guidance for the SECURE Act saying that if we had already sent RMD Notices to those who had not obtained age 70-1/2 by 12/31/2019 that we could send a corrected notice by 4/15/2020. But with the CARES Act and no RMD required for 2020, are we required to send a notice to RMD-age clients stating they are not required to RMD for 2020 but must restart for 2021?"

"Is spousal consent still required in order to make a lump sum distribution from a retirement plan that's subject to the QJSA rules?"

"Plan's loan program allows a participant to refinance their existing loan. Currently allows for only one outstanding loan. Under the 'normal' rules, the participant has a small amount of cash available in a refinance transaction. If the Plan adopts the COVID-19 loan rules, and assuming the participant is a qualified individual, can they refinance the existing loan using COVID-19 expanded loan limits and payment suspension?

I've seen it indicated elsewhere that a plan that does not normally allow for loans can adopt the COVID-19 loan rules and allow COVID-19-related loans only. Is it a stretch then, in a situation like this, that the Plan could allow for a new COVID-19 loan by adopting the COVID-19 rules and maintain the one 'normal' loan restriction? So in the example, the participant would be permitted to have one normal loan and one COVID-19 loan, without having to change the 'normal' loan policy and would then not need to refinance the existing loan?"

"How would vesting work for an employee who left after 3 years of service (40% vested) and received a cash payout with the rest being forfeited, and then returns two years later when he's allocated new shares for another year and a half of service, and then once again leaves the plan?"

"For Qualifiying Indviduals under the CARES Act, the 25% excise tax does not apply, correct? CARES says 72(t) does not apply. The 25% penalty tax is in 72(t)."

"Believe it or not, I am working on valuing a DB plan that is only now moving to using individual data. Back in the '80s/'90s when this change was happening, how was the change defined in the FSA? (It's before my time.)"

"I have seen some discrepancy in summaries of the RMD rules for 2020 under the CARES Act. Section 2203 (a)(I)(ii) says that the RMD rules are suspended for 2020. Section 2203(a)(I)(ii) adds what I thought was a special rule/clarification that required beginning dates in 2020 are effectively suspended. But I've seen summaries that imply that the RMD suspension ONLY applies for distributions for those participants with required beginning dates in 2020. So, which is it -- are all RMDs suspended in 2020 or only those for required beginning dates in 2020?"

"I have read several commentaries saying that the increased loan maximum for 'qualified individuals' is an optional change, but that the loan repayment provision is mandatory. Agree?"

"The PPP loans cover retirement plan contributions. Does this by any chance include DB plan contributions?"

"Shout out to Derrin Watson who, on the ERISApedia webcast today, provided an important clarification regarding hardship distributions under the FEMA provisions, as described below.

The definition is more specific then I had realized.

Abridged version of the reg:

(7) Expenses and losses (including loss of income) incurred by the employee on account of a disaster declared by the Federal Emergency Management Agency (FEMA) …provided that the employee's principal residence was located in an area designated by FEMA for individual assistance with respect to the disaster.

How do we know if the state was in a FEMA disaster area that was designated for Individual Assistance?

1. Go to this website: https://www.fema.gov/disasters
2. From the state drop-down, select the State. Click on the “Apply" button.
3. Click on the link for COVID-19 Pandemic (if there is one!). Make sure you click on the most recent one.
4. Go to the Financial Assistance section.
5. If it says 'Individual Assistance' then the employee is eligible for these hardship distributions. If for example it only says “public assistance” then it does NOT qualify."

"What 1099-R code should be used for a coronavirus related withdrawal for a participant under 59-1/2? Can we use code 2 so they are not subject to penalty, or should we use code 1 and let them sort it out when they do their tax return?"

"What options does the sponsor of SIMPLE plan have if they can't afford to make the required employer contribution? It's my understanding unlike a SH 401(k), a SIMPLE contribution can't be reduced or suspended mid-plan year. In addition, a SIMPLE can't be terminated mid-year."

"When a retirement plan has always used a safe-harbor regime (or has used one for many years), the plan's sponsor might lack information to predict what coverage, non-discrimination, and top-heavy test would show absent the safe-harbor treatment. Consider, while a good-enough sense of this information might be obvious to those with the data, it might be almost an unknown to the plan's sponsor, and might be a complete unknown to the plan sponsor's lawyer. If a plan's sponsor wants information to help the sponsor decide whether to discontinue a safe-harbor contribution, how quickly does a recordkeeper or third-party administrator turn around that testing? (While I know it's often not a realistic assumption, assume complete and clean data. And assume the service provider's fee is paid in advance.)"