Springfield, Mass., April 6, 2020 – Massachusetts Mutual Life Insurance Company (MassMutual) has announced that it is implementing new provisions available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act beginning this week.
“We understand that challenging times compel some individuals to consider tapping retirement savings to meet their immediate needs and these new provisions will be helpful,” said Teresa Hassara, head of workplace solutions, MassMutual. “That said, before anyone dips into their retirement savings, it could be beneficial to speak with the plan provider, a financial professional or employer to help weigh options and make a thoughtful decision.”
To start, MassMutual is offering several new provisions enabled by the CARES Act for its 32,000 retirement plan sponsors to offer employees enrolled in a MassMutual retirement plan, which reflects 3 million participants. Plan sponsors can ‘opt-in’ to offer:
- A suspension of required minimum distributions for 2020
- A temporary increase of up to $100,000 for loans and an extension of up to one year for loan repayment
- A penalty-free COVID-19-related distribution capped at $100,000 with no mandatory tax withholding requirements and the ability to repay distributions
Furthermore, until further notice, MassMutual is also waiving fees associated with eligible retirement plan hardship distributions, loan initiations, and withdrawals under the CARES Act. MassMutual will also continue to pay third-party administrators’ portions of these fees.
“We’re all in this together, and we’re hopeful that these new offerings help alleviate financial struggles of families hit hard by the global pandemic and economy,” added Hassara. “At MassMutual, we help people secure their future and protect the ones they love, and we want to do everything we can to help families with their immediate needs while attempting to stay on track saving for the retirement they envision.”