Qualified Individuals for COVID-Related Distributions

Q: Who is a qualified individual for purposes of COVID-related distributions? 

A: A qualified individual is anyone who: 

• Is diagnosed with the virus (via test approved by CDC).
• Has a spouse or dependent is diagnosed with virus.
• Suffers, or whose spouse or member of household, experiences adverse financial consequences as a result of these factors: 
  • Quarantine
  • Furlough
  • Being laid off
  • Has work hours reduced
  • Is unable to work due to child care 
  • Experiences the effect of business closure
  • Has a reduction in pay or self-employment income 
  • Has a job offer rescinded
  • Experiences the effect of other factors as determined by the Secretary of the Treasury 

A plan sponsor can rely on the certification of the individual that they are “qualified.”