I don’t deal with DROPs very often, and never am 100% certain if they should be approached as a DB plan or a DC plan.

Someone asked me today if CARES allowed participants heightened liquidity in their DROP, and while I told them that the easiest answer was to ask the DROP administrator, I am still wondering just for my own benefit if CARES impacted DROPs at all.

CARES speaks in broad terms of “qualified retirement plans”, but my understanding of DROPs was that there was no way to ge the money out “early” – i.e., the only three ways you could access your DROP money was retirement, death, or separation from service.

Not sure if there are any other ways to get to the money if you don’t meet one of those three criteria. And if not, does CARES create a fourth way?

Would be grateful for guidance on this. Please and thank you.