MTHA arranges for pension fund options related to COVID-19

The Maryland Thoroughbred Horsemen’s Association has worked with Pollard & Associates to provide new options for members of the Backstretch Pension Program due to the ongoing coronavirus COVID-19 situation.

The objective is to allow members to access funds if they meet certain criteria. Participants must demonstrate a loss of revenue in order to qualify.

According to Pollard & Associates, a COVID-19 Qualified Individual is:

• A participant diagnosed with COVID-19 by a Centers for Disease Control-approved test;
• A participant whose spouse or dependent has been diagnosed with COVID-19 by a CDC-approved test;
• A participant who experiences adverse financial consequences as a result of being quarantined, furloughed or laid off; having work hours reduced; or is unable to work due to lack of child care.                                                                                                                                 

Those who qualify could be eligible for a Coronavirus-Related Distribution (CRD) up to the lesser of 100% of your vested account balance or $100,000. Please note:

• The CRD is subject to income tax, but is exempt from the 10% early withdrawal penalty if you are under age 59½.
• Income tax can be spread over 3 years.
• You can repay the distribution to the plan or to an IRA within 3 years to recover any taxes paid.
• The CRD can be taken any time through Dec. 30, 2020.

If you can qualify as a COVID-19 Qualified Individual and you would like to inquire into this option, you must complete the CARES Act Qualified Individual Certification and return to our Third Party Administrator who will coordinate the process for you. Please return all paperwork and direct questions to Allison Bach, Pollard & Associates Inc. She can be reached via email at abach@pollardpensions.com, by phone at 443-689-2549, or by fax at 410-771-3036.