CARES Act – Suspension of Loan Payment Provision
If adopted by the plan, this applies to all qualified employees still working as well as qualified furloughed employees and those on a temporary leave of absence.
Loan payments due between March 27, 2020 and December 31, 2020 may be delayed for 1 year and extends the 5-year repayment period accordingly. This applies to any loans on the books as of March 27, 2020 or any new loans taken between March 27, 2020 and December 31, 2020. Following the end of the suspension period, the loan will be re-amortized to adjust the remaining payments (plus interest accrued during the suspension period) over the remaining period of the loan, plus the suspension period.
Please contact your Watkins Ross administrator if you have questions about how this applies to your plan.
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