Updated Definition of Qualified Individual – CARES Act

The CARES Act provides loan and withdrawal relief to qualified individuals. In Notice 2020-50, the IRS updated the definition of a Qualified Individual for purposes of CRDs and CRLs.

A qualified individual must meet one of the following criteria:

  • Participant, spouse or dependent diagnosed with SARS-CoV-2 or with coronavirus disease 2019 (COVID-19) by a test approved by the Centers for Disease Control and Prevention (including a test authorized under the Federal Food, Drug and Cosmetic Act)
  • Participant, participant’s spouse or member of participant’s household experienced adverse financial consequences as a result of the following:
    • Being quarantined, furloughed, laid off, or having work hours reduced
    • Being unable to work due to lack of childcare
    • Closing or reducing hours of a business that they own or operate
    • Reduction in pay or self-employment income
    • Having a job offer rescinded or start date for a job delayed
  • Meet other factors as determined by the Secretary of the Treasury

To learn more about the CARES Act, click here.



Consider TRA's 3(16) Plan Administration Relief Services (PARS)

To alleviate the day-to-day administrative burdens of yours or your clients retirement plans.