COVID-19 Resources

As a critical partner to your business, CSi Advisory Services understands the importance of our ability to continue to support our clients and their employees amidst this global health event.

The health and well-being of our associates, clients, and their employees is of utmost importance to us. We have been monitoring Coronavirus (COVID-19) developments closely through local authorities, the U.S. Centers for Disease Control and Prevention, and the World Health Organization. As the situation continues to evolve, we are keenly focused on our preparedness efforts to maintain a safe work environment for our associates and to sustain our business operations.

Virtual or Phone Meetings

CSi Advisory Services remains committed to providing support to our employers and their plan participants.  While our in-person meetings are temporarily suspended, we are still very willing to conduct meetings over the phone or through video conferencing.  If you would like us to host a group meeting for your employees or if your employees would like to schedule an individual meeting, please feel free to reach out to us using our Request for Consultation.

COVID-19 INSIGHTS FOR RETIREMENT PLAN SPONSORS

As of March 2020, the COVID-19 pandemic has made its impact throughout the United States. Not only has it had a significant effect to the economy, it has changed nearly every Americans way of life. It has most definitely made its mark on your company, which may present serious financial difficulties for your employees. Given the immediate financial impact that many individuals are facing, employers and retirement plan administrators should expect to receive inquiries from plan participants regarding access to retirement savings. 


Some companies may need to take action in regards to employer contributions and even personnel in the coming days, weeks and months. The following information is aimed at preparing you for inquiries, administration and decisions you might encounter, including:

  • C.A.R.E.S. Act Legislation

  • Hardship Distributions

  • Loans

  • Impact of Furloughs

  • Partial Plan Terminations

  • Plan Investments

  • Employee Compensation

  • Employer Contributions

For additional information click here.

C.A.R.E.S. Act Legislation

The Coronavirus, Aid, Relief, and Economic Security (C.A.R.E.S.) Act (the “Act”) was passed on March 27, 2020. The Act is intended to loosen access to retirement plan funds for individuals impacted by the COVID-19 pandemic.  At present the following are elements of the Act:

  • Waiver of 10% penalty on early withdrawals for amounts up to $100,000 from a retirement plan or IRA

For an individual who:

  • Is diagnosed with COVID-19;

  • Whose spouse is diagnosed with COVID-19;

  • Who experiences adverse financial consequences due to furlough, quarantine, layoff, reduction in hours, inability to work due to lack of child care due to COVID-19, or closing of business/reduction of hours by individual due to COVID-19; or

  • Factors determined by the Secretary of the Treasury

  • Individuals are allowed pay the tax on distributions ratably over a three year period; and

  • Individuals are allowed to repay the distribution back to the plan, tax-free, over the next three years (not limited by plan limits)

 

Plan loan are impacted as follows:

  • Amount available is doubled to the lesser of:

    • $100,000; or

    • 100% of their vested account balance.

    • Individuals with outstanding loans with a repayment due from the date of enactment of CARES through December 31, 2020 may delay loan repayments for up to one year.

 

Required Minimum Distributions (RMD):

  • Temporary suspension of the annual RMDs due in 2020

  • Participants who want to continue taking their distributions will be able to do so.

 

The plan will eventually need to be amended.

As legislation is quickly evolving, we will keep you informed of any and all pertinent information.

This material is for informational purposes only and is not intended as authoritative guidance or tax or legal advice. You should consult your attorney or tax advisor for guidance on your specific situation.

900 East 96th Street, Suite 325

Indianapolis, IN 46240

Contact Us Directly:

Phone: (317) 844-3256

Email: info@csiadvisoryservices.com

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Securities are offered through LPL Financial.  Member FINRA/SIPC.  Investment advisory services offered through CSi Advisory Services a registered investment advisor. CSi Advisory Services and LPL Financial are separate non-affiliated entities. 

The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: IN, IL, DE, OH, KY, FL, NJ, PA, MD. ME. VA, NC, CO, MS, IA, LA, WY, OR, AL, MO, GA, CA, TN.