Sec. 302. Conversion of certain 2020 distributions to qualified loans for purposes of CARES Act
239 words·~1 min read·
/bill/116/s/4537/is/section-302·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
At the election of any individual, any distribution from a qualified employer plan (as defined in section 72(p)(4) of the Internal Revenue Code of 1986) which is made on or after January 1, 2020, and before the date of the enactment of this Act may be treated for purposes of such Code and section 2202(b) of the CARES Act as a loan to which paragraphs
(1)and
(2)of such section 2202(b) apply. Subsection
(a)shall apply only to so much of any such distributions as in the aggregate does not exceed the limitation determined under section 72(p)(2)(A) of the Internal Revenue Code of 1986, applied— by substituting $100,000 for $50,000 in clause
(i)thereof, and by substituting the present value of the nonforfeitable accrued benefit of the employee under the plan for one-half of the present value of the nonforfeitable accrued benefit of the employee under the plan in clause
(ii)thereof. If subsection
(a)applies to any distribution, the individual shall be treated— as not having received a distribution, and as having received a loan on the date the original distribution was made. Subsection
(a)shall not apply to any distribution unless the employer of the individual consents to the treatment of such distribution as a loan from the plan. Such consent may apply to the application of either paragraph
(1)or
(2)of section 2202(b) of the CARES Act, or both, with respect to any distribution.