Expanded loan availability under the CARES Act ending – deadline today
The CARES Act, which provided a number of financial helps for those affected by the pandemic, included a provision that expanded retirement plan loan availability to 100% of vested balances up to $100,000. USC also added the opportunity for participants to take a second loan to take advantage of the CARES Act provisions.
The expanded loan availability under the CARES Act will end on September 22. At that time, USC loan availability will revert to the provisions specified in the Plan Document:
- one outstanding loan at a time
- a defaulted loan is considered an outstanding loan
- seven day waiting period between loans
- 50% of vested balances in 401(a) plan and 403(b) supplemental accounts
- Maximum loan is $50,000 less highest outstanding balance in the preceding 12 months.
To meet the September 22 deadline, loan applications for loans under the CARES Act must be received by the HR Service Center (email@example.com) in good order (including notarized spousal consent) no later than Friday, September 18. Please note that the investment providers will not process late applications no matter the reason for the delay.