At 401GO we hold the vision that everyone should have access to a 401(k) plan, and that it should be affordable and portable. Costs should be low and technology abundant. However, given the current events we are also realistic and understand that businesses may not be looking at the 401(k) plan as much as other more pressing matters take precedence. We want to put your mind at ease. We take care of the 401(k) plan so you can focus on navigating the difficult economic dilemma prevalent in the United States today.

When it comes to saving for the future, even the eventual goal of retirement, it is usually with the perspective of anticipated and expected outcomes. The outcome hopefully of having sufficiently saved up or that things will be better off when that future event or moment arrives. The unprecedented spread of COVID-19 has changed all of that for many people. In that respect, we understand that access to the 401(k) account can have a life-altering outcome.

On March 27, 2020 the over $2 Trillion dollar Coronovirus Aid Relief and Economic Security (CARES) Act was passed. This legislation has multiple provisions in it to help with the situation that many face, but more specifically it provides unique access to the 401(k) account for those participating.

All of these changes concerning the 401(k) can be immediately implemented by 401GO. There is no lapse or break in time to prevent our ability to accommodate these things for our existing and new clients. It is important to people and therefore important to us.

Those changes to the 401(k) plan from the CARES Act are summarized below:


  • Withdrawals taken in 2020 (January 1 to December 31) can be taken penalty-free up to $100,000 from the 401(k) account
    • Those who have been directly or indirectly affected by the COVID-19 outbreak are eligible for this withdrawal, whether themselves, spouse, or family member has suffered from the illness or economically through the loss of work, benefits, business, etc.
  • Certification of eligibility is done on the participant level (in other words, the participant can certify the need and not the plan sponsor)
  • The withdrawal can be paid back up to three years after it is taken either into the 401(k) plan from which it was withdrawn or another retirement account, such as an Individual Retirement Account (IRA). If it is not paid back then it is taxable to the participant.


  • Existing loans from March 27, 2020 to December 31, 2020 can be delayed for one year. Although it is delayed it would still accrue interest for the time it is delayed.
  • The loan can also be extended out one year from the original term.
  • Loans can be taken from 100% of the vested account balance for up to a max of $100,000.

Required Minimum Distributions (RMDs)

  • Distributions that are required for those of a certain age (originally 70 1/2 and now 72) are waived for 2020.
  • In other words, if it’s the first RMD that would be taken April 1, 2020 it is waived from having to be withdrawn.

These changes are available to those that are sponsoring a 401(k) plan and can be made upon request. The plan document will eventually need to be updated. The deadline for that is January 1, 2022. If you have any other questions or want to discuss these changes, please reach out to support@401go.com or call 801-214-2125.