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Emergency 401(k) Distribution Rules

  • A new coronavirus distribution option allows participants to withdraw up to $100,000 from their 401k plan.
  • The distribution is NOT subject to the early withdrawal of 10%.  Employees will pay normal income tax on the distribution but can balance the income taxes over three years.
  • Plan participants have 3 years to roll the distribution back into the plan without regard for that year’s cap on contributions.
  • The distribution will automatically be subject to 10% federal taxes withheld unless the participant requests that this withholding be waived.
  • Required minimum distribution requirements are waived for 2020.
  • To request an emergency distribution, login into your account at or call 1-800-878-5220.

CARES Financial Relief from BlueStar

Participant CARES Act Flyer