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COVID-19 Unemployment Resource Guide

| April 30, 2020

In just 6 weeks of the "new normal" under the COVID-19 pandemic, an unprecedented 30 million Americans have filed for unemployment benefits.1

Some employers are being forced to close their doors and come to grips with tough decisions to remain solvent. Employees are worried about job security and whether they'll be able to pay their bills if they lose their jobs.

With these concerns in mind, we developed a list of resources aimed at relieving financial and emotional stress during a period of unemployment related to the COVID-19 pandemic. We hope this serves as a tool for both employers and employees to help manage through this challenging time.

Income Assistance

 

  • Workplace Retirement Plans – Participants can access retirement plan balances at work due to a COVID-19 hardship via distributions or loans (please check with your benefits department to confirm availability). These options should be discussed with a tax advisor as there are tax consequences if the disbursement or loan is not repaid. In addition, both options remove assets from being invested in the market which could result in missed returns if market gains occur prior to the loan or distribution being repaid.
    • Coronavirus-Related Distributions:
      • Participants can withdraw up to $100,000 penalty free in 2020
      • Tax on the distribution can be spread over three years
      • Participants have up to three years to repay funds back into the plan to avoid paying taxes on the distribution (considered a rollover)
    • Coronavirus-Related Loans:
      • Participants can borrow the lesser of $100,000 or 100% of vested account balance
      • Must be taken out on or before 9/23/2020
      • Loan repayments can be delayed for up to one year (but interest will still accrue)
      • Participants have up to five years to repay the loan

Expense Assistance

 

 

 

 

 

Healthcare Assistance

https://www.theguardian.com/business/2020/apr/30/us-unemployment-americans-jobless-coronavirus-pandemic