The Time Is Now to Optimize DC Plan Loan Policies
With the passage of the Coronavirus Aid, Relief and Economic Security (CARES) Act, defined contribution (DC) plan sponsors face important decisions with respect to their plan design, specifically whether or not to adopt the special distribution and loan limit increases for those affected by the coronavirus. It is a good time for plan sponsors to consider additional design changes that could help preserve long-term retirement security, especially ones—such as extended 401(k) loan repayment and automated loan insurance—that address participant challenges related to job loss, given the unprecedented economic fallout from the COVID-19 pandemic.
Read the PLANSPONSOR article here.