Does the suspension period increase the loan term?
The CARES Act does not require for the plan sponsor to extend the term of the loan. However, the plan sponsor may choose to amend the plan document and/or the loan policy to add the period of suspension thus extending its term when the loan is reamortized to soften the impact of accrued interest and missed principal payments.
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.