EBRI’s most recent issue

03 Aug EBRI’s most recent issue

EBRI’s most recent issue brief summarizes its findings regarding the impact of a maximum $100,000 CARES Act coronavirus distribution (CRD) from a DC Plan account on retirement balances as a multiple of pay at age 65. EBRI’s simulation showed that participants in the aggregate who take the maximum CRD in 2020 with no payback would see a median 20% decrease in their balance, while the same participants who paid back their maximum CRD over three years would only see a 2.3% median reduction in account balance. The lesson? Plan sponsors and recordkeepers should encourage plan participants to repay their CRDs over the three years to avoid steep decreases in their retirement account balance.

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