Are there parameters that help define what constitutes ‘adverse financial consequences’?

CARES Act provides doesn’t establish specific parameters such as a minimum percent of reduction in hours or loss of income as a result of reduction in hours to quantify ‘adverse financial consequences.’ In the absence of specific guidance, individuals are expected to rely on good-faith interpretation of the Act. Plan sponsors are allowed to rely on plan participant’s self-certification and no verification is required.

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Cetera Retirement Plan Specialists is a third-party administrator and may not offer tax, legal or investment advice. Plan sponsors should consult their own tax, legal or investment professionals.