“Many businesses and individuals are struggling with harsh COVID-19 realities,” “The CARES Act, however, may provide some relief,” says advisor Beth Blecker.
NANUET, N.Y. (PRWEB) April 13, 2020
The CARES Act became law on Mar. 27, as a means to help provide relief for the economic downturn created by the coronavirus (COVID-19) pandemic.
“In addition to devastating personal and social consequences, the COVID-19 pandemic has created new financial planning challenges,” said Blecker. “There are now some new planning concerns for individuals and small-business owners to address. Our CARES Act white paper can provide a good blueprint for action.”
Below are some of the key points of the CARES Act:
Stimulus Check Details. Most Americans will receive a one-time direct payment of up to $1,200 for individuals (or $2,400 for married couples) with an additional $500 per child under age 17. These payments are based on the 2019 tax returns for those who have filed them and 2018 information if they have not. The amount is reduced if an individual makes more than $75,000 or a couple makes more than $150,000. Those who make more than $99,000 as an individual (or $198,000 as a couple) will not receive a payment.
Business Owner Relief: The act also allocates $500 billion for loans, loan guarantees, or investments to businesses, states, and municipalities.
Your Inherited 401(k)s: People who have inherited 401(k)s or Individual Retirement Accounts (IRAs) can suspend distributions in 2020. Required distributions do not apply to people with Roth IRAs. They do however, apply to those who have inherited Roth accounts.
RMDs Suspended: The CARES Act suspends the Required Minimum Distributions (RMDs) most must take from 401(k)s and IRAs in 2020. In 2009, Congress passed a similar rule giving retirees some distribution flexibility.
Withdrawal Penalties: Account owners can take a distribution of up to $100,000 from their retirement plan or IRA in 2020, without the 10-percent early withdrawal penalty that normally applies to money taken out before age 59½. Taxes however, will still be owed on the withdrawn amount.
“Many businesses and individuals are struggling with harsh COVID-19 realities,” “The CARES Act, however, may provide some relief,” says advisor Beth Blecker, RFC.
ABOUT EASTERN PLANNING INC: Securities and advisory services offered through Royal Alliance Associates, Inc. Member FINRA/SIPC. Additional advisory and financial planning offered through Affiliated Advisors, Inc. Insurance services offered through Eastern Planning Inc. Listed entities not affiliated with Royal Alliance. Eastern Planning and Royal Alliance do not offer tax services. Please consult with a tax professional for specific, individualized advice.
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Members of the media wishing to speak with Beth Blecker should contact: Joseph Finora: firstname.lastname@example.org / 631-680-7870.