Congress has passed the Cares Act. (link below to full text)
There are many items that could affect you and I will be crafting a longer analysis of items that may impact you and those you know. Here are some highlights:
1) Individuals making under $75k AGI in 2019 will received $1,200 payment, married couples under $150k will receive $2,400. An additional $500 for each qualified child.
2) Elimination of 10% early withdrawal penalty for distributions from retirement accounts related to the Corona Virus. Can be repaid back into the retirement accounts over 3 years. Income tax may be spread over 3 years as well.
3) It appears all RMD’s from retirement and beneficiary IRA’s have been suspended. It also appears you can give back distributions taken already this. I will be confirming these details.
4) Unemployment increased $600 over normal state unemployment. Benefits available without waiting the normal 1 week period.
5) Additional benefits for small businesses such as loans at maximum 4% interest, potential tax credit, and potential deferring of payroll taxes.
For those looking for additional reading, the best resource I have found so far is here:
Kitces’s intended target market is investment advisors so his articles tend to be technical in nature.
Please do not hesitate reaching out to me with any questions and please do not act without discussing it with a financial advisor.