MassMutual Offers CARES Act Provisions to Retirement Plan Clients

Plan sponsors can ‘opt-in’ to offer the provisions to participants.

MassMutual is offering several new provisions enabled by the Coronavirus Aid, Relief and Economic Security (CARES) Act for its 32,000 retirement plan sponsors to offer employees enrolled in a MassMutual retirement plan. Plan sponsors can ‘opt-in’ to offer:

  • A suspension of required minimum distributions for 2020
  • A temporary increase of up to $100,000 for loans and an extension of up to one year for loan repayment
  • A penalty-free COVID-19-related distribution capped at $100,000 with no mandatory tax withholding requirements and the ability to repay distributions
Furthermore, until further notice, MassMutual is also waiving fees associated with eligible retirement plan hardship distributions, loan initiations, and withdrawals under the CARES Act. MassMutual will also continue to pay third-party administrators’ portions of these fees.