Section 2202 of the CARES Act provides for expanded distribution options and favorable tax treatment for up to $100,000 of coronavirus-related distributions from eligible retirement plans to qualified individuals.
It also increases the limit on the amount a qualified individual may borrow from an eligible retirement plan (not including an IRA) and permits a plan sponsor to provide qualified individuals up to an additional year to repay their plan loans.
Under this section of CARES you do:
You are a qualified individual if:
The Treasury Department and the IRS will most likely issue guidance that expands the list of factors taken into account to determine whether an individual is a qualified individual as a result of experiencing adverse financial consequences.
Section 2202 also increased the maximum amount that you can borrow from retirement plans (not including IRAs) from $50,000 or 50% of your vested balance to $100,000 or 100% of your vested balance. This is for any money borrowed between March 27, 2020 and December 31, 2020. For individuals with existing loans, the due date for the loan repayment is suspended one year.
Click here for a more detailed discussion of Sectiom 2202.