OneAmerica® To Waive Hardship Fees in Response to CARES Act
Decision, which goes into effect today, impacts hardship and COVID distributions
In an effort to show support to its retirement plan participants during this unprecedented crisis, OneAmerica® today announced it is immediately waiving fees for all hardship withdrawals, including those distributions related to COVID-19.
The decision, announced by Sandy McCarthy, president of retirement services at OneAmerica, eliminates administrative fees for hardship and COVID-19 related distributions effective April 7, 2020 through December 31, 2020.
"At OneAmerica, we recognize that this is a time of uncertainty for many of our participants," McCarthy said. "We’re hopeful that this gesture will help to ease some of the burden."
The Coronavirus Aid, Relief, and Economic Security (CARES) Act signed into law March 27, provides additional opportunities for those affected by COVID-19 to access their retirement savings. Among its provisions, the CARES Act provides for COVID-19 distributions to participants of up to $100,000 of their vested retirement savings without the usual 10% penalty from the Internal Revenue Service, provided plan sponsors adopt the provision.
OneAmerica has chosen to automatically implement the COVID-19 distribution option for all plans that currently allow hardship withdrawals and has provided an opt-out for those plan that do not wish to offer the provision. The firm is also working with plan sponsors who do not currently offer hardship withdrawals, but would like to begin offering the provision. The special withdrawal rules apply to eligible retirement plans, which includes qualified 401(k) plans, qualified 403(a) annuity plans, 403(b) plans, and governmental section 457 deferred compensation plans. OneAmerica has chosen to waive the administrative fee for these COVID-19 distribution and has also expanded the fee waiver to include all hardship withdrawals.
"While we stress our belief that a withdrawal of any kind should be a last resort option, we understand that for some, it may be a necessary one," McCarthy added. "Providing this additional relief is just one of the ways OneAmerica is able to be there for participants when they need us the most."
OneAmerica has also created a COVID-19 webpage1, open to all participants and the general public. Whether people are looking to realign their budget, better understand market volatility or access additional COVID-19 information, this page can help navigate today’s environment and prepare for what lies ahead.
OneAmerica is the marketing name for the companies of OneAmerica.
Products issued and underwritten by American United Life Insurance Company® (AUL), a OneAmerica company. Administrative and recordkeeping services provided by McCready and Keene, Inc. or OneAmerica Retirement Services LLC, companies of OneAmerica which are not broker/dealers or investment advisors.
About OneAmerica®
A national provider of insurance and financial services for more than 140 years, the companies of OneAmerica help customers build and protect their financial futures. OneAmerica offers a variety of products and services to serve the financial needs of their policyholders and customers. These products include retirement plan products and recordkeeping services, individual life insurance, annuities, asset-based long-term care solutions and employee benefit plan products. Products are issued and underwritten by the companies of OneAmerica and distributed through a nationwide network of employees, agents, brokers and other sources who are committed to providing value to our customers. To learn more about our products, services and the companies of OneAmerica, visit oneamerica.com/about-us/companies-of-oneamerica.
1 https://www.oneamerica.com/misc/oneamerica-coronavirus-covid-19-financial-education
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