MassMutual Removes Fees on Hardship Distributions and Loans
COVID-19-related distributions will be capped at $100,000 with no mandatory tax withholding requirements and the ability to repay them.
MassMutual has announced that it is implementing new provisions for the 401(k) plans it oversees as recordkeeper, under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Plan sponsors can opt in to offer a suspension of required minimum distributions (RMDs) for 2020. MassMutual is also offering a temporary increase of up to $100,000 for loans and an extension of up to one year for loan repayment.
Until further notice, MassMutual is also waiving fees on hardship distributions and loans. COVID-19-related distributions will be penalty-free and capped at $100,000 with no mandatory tax withholding requirements.