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- Having a job offer rescinded or start date for a job delayed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