Impact of the CARES Act

The Coronavirus Aid, Relief and Economic Security (CARES) Act has been signed into law.  It is the largest stimulus package in United States history and will have significant impact on the economy.  The bill’s purpose is to provide relief for those impacted by the coronavirus and the economic downturn.  This is an overview of personal planning changes and opportunities:

  • Enhanced unemployment benefits
  • Stimulus payments of up to $1,200 per taxpayer and $500 per child with restrictions on income
  • Paycheck Protection Program Loans and SBA Disaster Relief Loans provide forgivable loans under certain circumstances to help small businesses and encourage them to retain employees.
  • Waiver of required minimum distribution (RMD) payments for 2020
  • Waiver of 10% tax penalty of pre-59 ½ distributions of up to $100,000 from retirement accounts with the ability to spread the tax liability over a 3-year period (normal income tax still applies).
  • The annual cap on retirement plan loans has been doubled to $100,000

Please note, this is only a small summary of the CARES Act. These provisions above will have the greatest impact on our clients. 

Kevin McNab

This article is written by Kevin J. McNab. Kevin is President of ACE Wealth Partners, LLC and is a CFP®, ChFC®, and CRPC®. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views expressed in this blog post are as of the date of the posting, and are subject to change based on market and other conditions. This blog contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this blog post should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax or legal advice. If you would like investment, accounting, tax or legal advice, you should consult with your own financial advisors, accountants, or attorneys regarding your individual circumstances and needs. No advice may be rendered by ACE Wealth Partners, LLC unless a client service agreement is in place. If you have any questions regarding this Blog Post, please Contact Us. Please read our website DISCLOSURE carefully for additional information.