On March 27th, the President signed the Corona Aid, Relief and Economic Security (CARES) Act into law.  Brown University is enacting some of the special provisions under the Act relating to retirement plan withdrawals and loans.  

 

403(B) plan participants at both Fidelity and TIAA may be eligible to take a withdrawal distribution if you meet certain criteria.  You may be eligible for a withdrawal if you have experienced adverse financial consequences relating to coronavirus, including:

• contracting the virus
• being quarantined
• being furloughed or having work hours reduced
• being unable to work because of lack of child care due to coronavirus

Coronavirus-related distributions must be taken prior to December 31, 2020.

 

Some important aspects of the distribution relating to the virus include:

• waiving the 10% penalty for early withdrawals up to $100,000*
• the ability to pay back the distribution tax-free over the next 3 years

* The $100,000 maximum applies across all eligible accounts combined

 

In addition, participants that have a 403(b) balance with TIAA are eligible to request a loan with enhanced features related to the virus.  The loan provision provides an increase to the maximum loan amount from $50,000 to $100,000 for any loans taken prior to September 24, 2020.  The maximum loan amount can be a combination of both employee contributions and vested employer contributions.  Employees with outstanding loans may elect to defer payment for up to 1 year.  

 

To find more information regarding the enhancements or to request a withdrawal or loan, please contact:

Fidelity Investments at 1-800-343-0860 or visit NetBenefits (withdrawals only)

TIAA at 1-800-842-2252 or visit TIAA CARES Act (withdrawals or loans)