As our valued clients, you are always our first concern. We want to share important updates related to the legislative relief package Coronavirus Aid, Relief and Security Act (CARES Act) signed March 27, 2020. It provides relief for individuals and businesses, as well as increased flexibility around retirement accounts for 2020. Please reach out to us with further questions on how this could apply to you personally.
Here are the highlights of the Act, along with a couple of earlier bills.
- Stimulus checks – $1,200 / person or $2,400 / couple for households with AGI of $75,000 / $150,000 in 2019. This is completely phased out at AGIs $99,000 and $198,000 respectively.
- Required Minimum Distributions eliminated for 2020. Potential to reverse RMD already taken for 2020 – For more details please refer to http://www.rtdfinancial.com/news/clarification-2020-ira-rmd-changes Time sensitive, reversal must be done within 60 days of original withdrawal.
- Expanded loan and withdrawal options from retirement accounts
- Unemployment enhanced and extended through the Families First Coronavirus Response Act (signed 3/18/2020) which enhances FMLA
- Self employed and 1099 contractors are now eligible for unemployment
- Deferral of Student Loans
- The Payroll Protection Program grants loans to firms with up to 500 people. It is eligible for forgiveness if used for payroll, rent, and utilities.
- Small businesses and sole proprietors may apply starting 4/3/2020; self employed and independent Contractors may apply starting 4/10/2020.
- Applications will be accepted through June 30, 2020, but this is time sensitive – first come first serve.
- Increased flexibility for Net Operating Loss rules
- Delay of payroll taxes
- Tax Refundable Employee Retention Credit
- Expansion of SBA Disaster Relief Funding (direct loans from SBA through Economic Injury Disaster Loans, or EIDL) to include impact from COVID-19 and with additional funding
We encourage you to contact your advisor for additional information on any aspects of this relief.