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    • Having a job offer rescinded or start date for a job delayed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.

 

Pattern

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