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As the COVID-19 pandemic continues its course, companies are cutting costs and working hard to stay in business. It is a difficult situation for everyone, but plan sponsors have the burden of evaluating COVID-19's impact on their organizations as well as their employees.

In late March, Congress provided plan sponsors and participants some much-needed support through the $2 trillion Coronavirus Aid, Relief and Economic Security (CARES) Act. The act provides direct financial aid to millions of Americans as well as companies of all sizes. It includes several provisions that give retirement plan participants increased access to assets in their 401(k), 403(b), individual retirement account (IRA) and other qualified retirement accounts.

The law also eases repayment rules for distributions or loans from these accounts. In addition, the CARES Act gives organizations flexibility by extending due dates on certain tax-related filings and payments, as well as providing pathways for some plans to suspend employer contributions.