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CARES Act Withdrawals and Loans
  401(k) Plan—CARES Act Withdrawals and Loans

The Archdiocese of Boston has adopted the following CARES Act provisions for the RCAB 401(k) Plan. Employees are encouraged to speak with a financial advisor prior to electing one of the withdrawal options below. Withdrawal of retirement plan savings to pay for immediate expenses may not be the right decision for every employee.

  • Penalties and withholding are waived for qualified in-service withdrawals made in 2020 from your 401(k) account.

  • 401(k) loan limits have increased and you may request deferment of your loan repayment for a year.

In addition to these CARES Act relief measures, the deadline for 2019 Individual Retirement Account (IRA) contributions has been extended from April 15 to July 15, 2020.

Who is eligible for Coronavirus-related withdrawals and loans?
You are considered eligible to take withdrawals/loans from your 401(k) if any of the conditions below are met:

  • You have been diagnosed with COVID-19 by a test approved by the Centers for Disease Control and Prevention;

  • You have a spouse or dependent who has been diagnosed with COVID-19; or

  • You suffered financial consequences as a result of quarantine, employment furlough, layoffs, or reduced work hours or you cannot work due to lack of child care as a result of the coronavirus.

Self-Certification: If you choose to take a coronavirus-related withdrawal or loan, you must self-certify on the TIAA online portal that you satisfy the eligibility requirement described above.

How can the CARES Act help if you are eligible?
Penalties and withholding are waived for qualified in-service withdrawals during 2020 from your 401(k) account.

  • The CARES Act waives the 10% early withdrawal penalty (penalty is normally applicable to employees under age 59.5 who take a withdrawal) and eliminates the 20% withholding for coronavirus-related distributions of up to $100,000 across qualified retirement plans and IRAs. 

    Note: Although the 20% withholding will not be taken from distributions, you have the option to add withholding if you want.
  • Distributions will be subject to taxation, and you will have the option to pay taxes due over a three-year period. You may want to consult with your personal tax advisor about the tax consequence for such a distribution, including whether you would like to have taxes withheld from your distribution.

  • You may reinvest (roll over) withdrawn funds back into your 401(k) Plan account within three years, regardless of that year’s contribution limit.  Allowing this reinvestment makes it easier for you to replace the amount of your distribution in your 401(k) account.

  • You will be required to certify that you are not withdrawing more than $100,000 from across ALL plans and IRAs.

Retirement plan loan limits are temporarily increased

  • Maximum retirement plan loan limits have increased from $50,000 or 50% of vested account balances to $100,000 or 100% of the vested account balance (whichever amount is lesser) for loans made through September 23, 2020.

  • Loans may NOT be taken from employer funds, such as employer contributions or employer match, or Roth.

  • If you have existing 401(k) loan payments due between March 27 and December 31, 2020, you may request a suspension of loan repayments for up to one year and extend the term of your loan by one year.

  • The loan approval process will remain the same as it does for non-coronavirus-related loans.

How do I request a coronavirus-related withdrawal or loan?
Visit TIAA.org or call TIAA at 855-400-4294. 

You may also contact the Benefits Office at 617-746-5640 or benefits@rcab.org for any questions related to these new options.


RCAB 401(k) Plan Annual Safe Harbor Notice (2020)
RCAB 401(k) Plan Annual Automatic Enrollment Notice (2020)

RCAB Salary Deferral Form + Waiver Form
RCAB Salary Deferral Form + Waiver Form – Portuguese
RCAB Salary Deferral Form + Waiver Form – Spanish

RCAB 401(k) Plan Overview
TIAA Presentation – Getting a Head Start on Retirement Saving


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