New Penalty-Free Distribution Option for Emergency Expenses Under SECURE 2.0
Help your clients understand the new penalty-free distribution option for emergency expenses, including eligibility and benefits of the provision, introduced by the SECURE 2.0 Act.
Key Points
- Emergency Expense Distributions: Educate clients on the new penalty-free distribution option for emergency expenses, highlighting the eligibility criteria and the maximum distribution amount.
- Repayment Rules: Inform clients of the repayment rules for these distributions, including the three-year repayment period and the conditions for taking additional distributions.
- Plan Administrator Guidance: Provide clients with guidance on how plan administrators can manage these distributions, including relying on employee certifications and understanding the applicable reporting requirements.