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Learn how provisions of the CARES Act may impact your account in 2021

If you suspended your Required Minimum Distribution (RMD), took a withdrawal from your account, or delayed your Savings Plus loan repayments, we want to help you get back on track with your long-term savings goals.

The following Coronavirus Aid, Relief, and Economic Security (CARES) Act provisions may impact your account in 2021:

  • RMDs resume in 2021
  • Coronavirus-Related Distribution(s) (CRDS) can be repaid
  • Loan repayments delayed in 2020 will resume in 2021
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Required Minimum Distributions (RMDs)

The CARES Act made temporary waivers to RMDs for all types of defined contribution plans (including 401(a), 401(k), 403(b), and governmental 457(b) plans) and IRAs for the calendar year 2020. Beginning January 1, 2021, RMD requirements will resume. However, RMDs are waived for individuals who postponed their initial RMD to April 1, 2021.

If you received an RMD during calendar year 2020, you can redeposit the money back into your Savings Plus account 60 days from receipt of payment. Complete the 2020 CARES Act Required Minimum Distribution Rollover Form to redeposit your RMD.

Savings Plus 2020 CARES Act Required Minimum Distribution Return Form

Coronavirus-Related Distributions (CRDs)

The CARES Act allows you to repay a portion, or all of your qualifying CRDs, for individuals who took distribution amounts up to $100,000 from any eligible retirement plans. Repaying CRDs, even just a portion, can make a big difference in your retirement savings when it comes time to retire.

  • CRD repayments are available within three years of when you received the distribution.
  • You may repay the amount up to the gross amount of your total distributions. You may send in multiple repayments up to the gross amount over the three-year period.
  • We're unable to accept Roth money back into your account at Savings Plus. You may be able to repay this amount to a Roth IRA. Repayments are treated as a rollover contribution to the Plan and aren't subject to the annual contribution limit.
  • Complete the Coronavirus - Related Distribution (CRD) Repayment Incoming Assets Form and submit along with a money order, cashier’s check, or personal check.

Qualifying Coronavirus-Related Distribution is defined in the CARES Act:

  1. I was diagnosed with the virus SARS-CoV-2 or with coronavirus disease 2019 (referred to collectively as COVID-19) by a test approved by the Centers for Disease Control and Prevention (including a test authorized under the Federal Food, Drug, and Cosmetic Act); or
  2. My spouse or my dependent was diagnosed with COVID-19 by a test approved by the Centers for Disease Control and Prevention (including a test authorized under the Federal Food, Drug, and Cosmetic Act); or
  3. I have experienced adverse financial consequences because:

    • I, my spouse, or a member of my household* was quarantined, furloughed or laid off, or had work hours reduced due to COVID-19; or
    • I, my spouse, or a member of my household* was unable to work due to lack of child care due to COVID-19; or
    • A business owned or operated by me, my spouse, or a member of my household* closed or reduced hours due to COVID-19; or
    • I, my spouse, or a member of my household* had a reduction in pay (or self-employment income) due to COVID-19, or had a job offer rescinded or start date for a job delayed due to COVID-19.

    *A member of the individual's household is someone who shares the individual's principal residence.

Loan Provisions

Delay Loan Repayments

The CARES Act allowed qualifying participants to delay loan repayments until 2021. If you delayed your loan repayments, the loan continued to accrue interest during the suspension period. As such, your repayment amount may increase, in addition your loan maturity date will be extended by 12 months. You must resume repayment of the loan in 2021. The outstanding loan balance, including any accrued interest, will be re-amortized over the extended maturity date of your loan. You'll be notified of any change to the above information and a new amortization schedule will be provided.

Please reach out to the Savings Plus Solutions Center if you have any questions about your loan repayments resuming in 2021.

Text alert reminders are available five business days prior to your direct debit repayment(s). To receive text reminders, contact the Savings Plus Solutions Center or visit savingsplusnow.com. Select your name in the top right corner, then choose Contact Preferences and update your alert Notification Preferences

Modifications to Current Loan Provision

Additionally, the following changes to our loan parameters for all participants will remain in effect through March 31, 2021:

  • Increasing the maximum number of loans per plan from one to two. However, primary residence loans are limited to one per plan
  • Reducing the minimum required balance to qualify for a loan from $10,000 to $5,000
  • Reducing the minimum loan amount from $5,000 to $2,500

Access your account online or contact us with questions.

Login to your Savings Plus account to make changes to your contributions, update your investment strategy, and more.

Contact the Savings Plus Solutions Center at (855) 616-4776 from 5 a.m. – 8 p.m. PT, Monday-Friday.

Reach out to the licensed Retirement Specialist in your area to set up an appointment.

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