Talk to Fidelity about your financial situation.
In a time of unprecedented health concerns and market volatility, Fidelity can help you understand the landscape of regulatory and legislative actions. Fidelity is closely monitoring two potential vehicles to allow participants access to funds in their 401(k), 403(b) and 457(b) plans.
QUALIFYING CORONAVIRUS-RELATED DISTRIBUTIONS (QCDs):
In its current form, the Coronavirus Aid, Relief, and Economic Security (CARES) Act would allow participants to take penalty-free withdrawals of up to $100,000 for those who meet certain criteria related to the coronavirus (COVID-19). These include adverse financial consequences because of being quarantined, furloughed, laid off or having work hours reduced; being unable to work due to a lack of child care because of COVID-19; or closing or reducing hours of a business owned or operated by the individual due to COVID-19.
Important to note:
• Income tax on the distribution may be paid over a three-year period;
• Participants will have the ability to repay the amount withdrawn within three years;
• Repayments will not be subject to the retirement plan contribution limits; and
• All contribution sources (other than money purchase pension plan sources) will be available.
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