CARES Act: How Do Retirement Provisions Impact You?

CARES Infographic

The recently enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020 includes a number of provisions that could impact retirement plans and participants.

  • Notably, all workers and retirees below certain income limits will be eligible for economic impact payments up to a maximum of $1,200 per person. The infographic to the right from the Internal Revenue Service (IRS) provides details.

The IRS is encouraging those typically not required to file tax returns, including seniors, to file a 2019 tax return to ensure they receive their recovery rebate as quickly as possible. This may apply to you if:

You were not required to file a 2018 or 2019 tax return because of specific income guidelines; or

You do not participate in Social Security, and therefore, did not receive a 1099 from the Social Security Administration. 

Unfortunately, MPERS cannot answer any questions regarding your economic impact payment. We are just passing along this information to be helpful.

  • Also, the CARES Act modifies retirement plan Required Minimum Distribution (RMD) rules. Last December, the Setting Every Community Up for Retirement Enhancement Act (SECURE Act) raised the age trigger for receiving RMDs from 70 ½ to 72. That change applies to individuals turning 70 ½ on or after January 1, 2020. For individuals under the prior age trigger, the CARES Act now waives RMDs for 2019 that would have been made by April 1, 2020, and any RMD required to be paid in 2020. It is a one-year delay and applies to defined contribution 401(a) plans, governmental 457(b) plans, 403(b)plans, 401(k) plans, as well as IRAs. 
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