UC Regents approve loans and withdrawals from UC Retirement Savings Program plans for those impacted by COVID-19
On May 21, 2020, the UC Board of Regents voted to implement provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) designed to make it easier for participants to access funds from their retirement savings plans. These optional provisions required approval from the Regents, who are responsible for overseeing the UC Retirement Savings Program (which includes the Defined Contribution Plan, Tax-Deferred 403(b) Plan, and 457(b) Deferred Compensation Plan).
What you need to know
If you or a dependent are diagnosed with the virus SARS-Co-V-2 or with coronavirus disease 2019 (COVID-19), or you experience adverse financial consequences as a result of the virus or disease, the CARES Act is designed to help by extending access to loans and withdrawals from employer-sponsored retirement savings plans like UC’s. CARES Act withdrawals are available until December 30th, 2020.
The CARES Act allows you to withdraw up to $100,000 of your own balances from your UC 403(b), 457(b) plan, or DC Plan account without owing an early withdrawal penalty. The withdrawal made will not be subject to federal tax income and can be paid back partly or in full within three years.
Weigh the consequences on your future financial security before you tap into your UC retirement savings accounts, especially in volatile markets. If you have access to other means of funding, such as home equity, a family member, or other viable sources of short-term cash, consider these options as well.
There is a list of financial consequences one must qualify for to obtain a CARES Act withdrawal, loan, or to delay a loan repayment. For more information on the CARES Act and its provisions please visit one of these resources:
- How 403(b) Plan Loans Work.
- Call a UC-dedicated Fidelity Retirement Planner at 1-800-558-9182.
For more information on this topic, please visit the UCnet website.