Emergency 401(k) Distribution Rules

A new coronavirus distribution option allows participants to withdraw up to $100,000 from their 401k plan.
The distribution is NOT subject to the early withdrawal of 10%. Employees will pay normal income tax on the distribution but can balance the income taxes over three years.
Plan participants have 3 years to roll the distribution back into the plan without regard for that year’s cap on contributions.
The distribution will automatically be subject to 10% federal taxes withheld unless the participant requests that this withholding be waived.
Required minimum distribution requirements are waived for 2020.
To request an emergency distribution, login into your account at www.myplanconnection.com or call 1-800-878-5220.

CARES Financial Relief from BlueStar