CARES ACT and Summary Plan Description Notice
This is an announcement regarding the temporary changes to the Deseret 401(k) because of the Cares Act providing COVID-19 pandemic relief for plan participants who qualify. The updated Deseret 401(k) Plan Summary Plan Description (SPD) is now available on the DMBA website at www.dmba.com. The updated SPD explains the following plan changes:
- The BlackRock LifePath index funds were added as plan investment options and as the Qualified Default Investment Alternative on May 15, 2020.
- Effective May 21, 2020, plan participants impacted by COVID-19 (coronavirus) may be eligible to withdraw money from their plan accounts and/or to delay existing loan payments until January 2021. Please be advised that the plan will be in blackout and will not process transactions from 2 pm on June 24 through 8 am on July 24.
- Plan participants can defer 401(k) loan payments through 2020. This also includes new loans taken through November 2020.
- Participants can withdraw up to $10,000 from their 401(k) through December 15, 2020. Withdrawals are taxable, but DMBA will not withhold the usual 20% for federal tax; however, the withdrawal is taxable, potentially over a three year period. There is no 10% tax penalty.
- We have a new Summary Plan Description (SPD) available for the Deseret 401(k), with updates including the new BlackRock LifePath Index (target date) Funds, and temporary changes because of the Cares Act described above. Please see pages 11-12 in the SPD for specifics about how an employee qualifies for the COVID-19 pandemic relief.
If employees meet the criteria for COVID-19 related withdrawals and loan payment deferments, they need to submit the self-certified paperwork to DMBA before June 17, 2020, if they need the funds or deferment before the transition blackout begins. If not, this will be available to them when the blackout transition period is complete on July 24, 2020.