OneAmerica Forgives Hardship Withdrawal Fees

The recordkeeper is making the move in response to the CARES Act.

OneAmerica is waiving fees for hardship and COVID-19 distributions from 401(k) plans, effective April 7 through December 31.

“At OneAmerica, we recognize that this is a time of uncertainty for many of our participants,” says Sandy McCarthy, president of retirement services at OneAmerica. “We’re hopeful that this gesture will help to ease some of the burden.

In response to the Coronavirus Aid, Relief and Economic Security (CARES) Act, OneAmerica has chosen to automatically implement the COVID-19 distribution option for all plans that currently allow hardship withdrawals and has provided an opt-out for those plans that do not wish to offer the provision. The firm is also working with plan sponsors that currently do not offer hardship withdrawals but would like to do so.

“While we stress our belief that a withdrawal of any kind should be a last resort option, we understand that for some, it may be a necessary one,” McCarthy adds. “Providing this additional relief is just one of the ways OneAmerica is able to be there for participants when they need us the most.”

OneAmerica has also created a COVID-19 webpage, open to all participants and the general public.

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