Retirement Plans FAQ

The following information is provided as a general reference to assist you in answering the most common questions regarding coronavirus (COVID-19) and specific products. It is not intended to be all-inclusive, but it is designed to provide general information on the most frequently asked questions.

Risk Background

The coronavirus (COVID-19) has quickly spread globally. Increased headlines and social media posts about growing COVID-19 infections have many credit unions concerned about their ability to continue critical operations while ensuring employee/member safety. Credit union leadership should remain committed to emergency preparedness and business continuity planning. A pandemic crisis can create confusion and potential panic among employees and even leadership.

For the latest information about symptoms, prevention, treatment and other facts, visit the Centers for Disease Control and Prevention (CDC)(opens in a new window) website, the World Health Organization (WHO)(opens in a new window) website, local, state, and federal governments.

Last updated: Thursday, March 26, 2020

Tax Payment Deadline Extended 90 Days

  • On March 17, 2020, President Trump authorized a 90-day extension for paying taxes.
  • Summary (based on announcement)
    • Individuals who owe up to $1 million can defer payment, interest free and penalty free, until July 15.
    • The same is true for corporations who owe up to $10 million.
    • Tax documents need to be filed by July 15, 2020.
    • The extension is meant to provide relief due to the COVID-19 outbreak.

What is covered by the extension?

  • The deadline to file taxes is still April 15, 2020, although individuals and corporations can defer payment up to 90 days.
  • Personal tax payments are extended 90 days. Typically, due April 15, now extended to July 15.
  • Corporate tax payments are extended 90 days. Typically, due April 15, now extended to July 15.

Does this extension have broader implications?

Not at this time. We have not received notice of any additional extensions. We will share information as it becomes available.

Does it change my audit and 5500 filing deadlines?

Not at this time. We have not received notice of any additional extensions. We will share information as it becomes available.

Is it safe to submit payrolls through my home computer?

Yes, our secure website (BenefitsforYou.com) is the best way to send payroll information to us.

If I’m trying to upload a distribution form and cannot make it work, can I take a picture with my phone and upload the picture?

Yes, you can upload a photo to the secure site.

Can I stop my safe harbor contributions (match or nonelective) mid-year because my business is impacted by COVID-19 pandemic?

Yes, please follow existing procedures for curtailing or ceasing safe harbor contributions. In 2009, the Treasury proposed regulations that expanded the rule, primarily in response to financial hardships being experienced by many employers that sponsored safe harbor 401(k) plans and would also apply in this situation as well.

Are hardships available due to COVID-19?

The hardships amendments that went into effect 1/1/20 for plans using the CUNA Mutual Retirement Solutions document, added a hardship reason for FEMA declared disasters (see sections 3.4 and 4.6 of the hardship amendment). Therefore, if the plan allows for hardships, and the participant’s primary residence or principal place of employment is in an area declared by FEMA and they have expenses or losses incurred because of the disaster, it would qualify for a hardship.

How do I know if my state has been declared a disaster by FEMA?

You can access the FEMA website.

If my business closes temporarily, what are the guidelines regarding outstanding loans?

As the employer, you need to make the determination if the employment relationship has been severed in the case of a layoff. If the employment relationship has not been severed, and you determine that there is a reasonable expectation the employees will return to service, and you apply the same policies to everyone, then they would qualify for the suspension of payments due to a leave of absence with all the applicable rules regarding suspension, repayment following end of LOA, etc.

Can I perform transactions on BenefitsForYou during a market closure, for example distributions and asset transfers?

Yes, the website is fully functional. A market closure will impact the pricing used for the transaction.

How does this impact my account?

  • The pricing on the account will be adjusted depending on the scenario.
  • Mid-day closure: Pricing updated at the close of the market for that day.
  • All-day closure: Pricing shows the last pricing day’s pricing, updated when the market reopens.

CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates.
CORP-3001448.1-0320-0422