Monday, September 28, 2020

If Your Plan Offers Loans, Here’s What You Need to Know about CRLs

The CARES Act introduced temporary, more flexible lending and repayment options for retirement account loans. If you modified your loan program for CARES by providing coronavirus-related loans (CRLs), it will look different in the following ways:

  • Loan repayments can be suspended through December 31, 2020. Plans that allow this option will receive notification in the future on how loans will be re-amortized to include any missed payments and interest accrued during the suspension period.
  • Repayment periods are extended by up to one year.
  • Borrowing limits are doubled to $100,000 or 100% of the vested account balance, whichever is less, for loans taken between March 27 and September 22, 2020.
  • Loan limits must be reduced to account for any loan balance over the past 12 months
Get the latest information on CRLs and find out what actions you may need to take. Download our Coronavirus-Related Loan Guide.