Willis Towers Watson conducted a survey showing that a vast majority of plan sponsors are opting for the CARES Act provisions on early distributions and plan loans.
Almost two-thirds of plan sponsors (65%) have increased access to the COVI-19 in-service distributions from participants’ 401(k) accounts while 16% either plan to or are considering doing so this year. 64% are allowing participants to defer loan repayments while 48% increased the maximum amount available for plan loans under the CARES Act. Another 17% are planning or considering making either adjustment this year.
Surprisingly, only 12% of plan sponsors suspended their matching contributions, but 23% are either planning to or considering doing so this year.