First and foremost I hope this finds you and your family safe and healthy. Once again an extra special THANK YOU to all those on the front lines in helping us all deal with this unprecedented time in our lives. We cannot thank those people enough for their courage and sacrifice. Many may already be aware of the massive stimulus package (CARES ACT) passed on March 27th. Putting it mildly there is a lot in this legislation, however a few pieces of information we did want to highlight include:
IRS tax deadline extension.The IRS is extending the federal income tax filing due date of April 15 to July 15, 2020 instead, without penalty or interest. This is an automatic extension that applies to all taxpayers, regardless of the amount owed, including individuals, trusts and estates, and those who pay self-employment tax.
IRA contribution extension.Along with the tax filing extension of July 15, 2020, comes an extended deadline for contributing to last year’s IRA. If you get a stimulus check and haven’t yet reached the $6,000 max (or $7,000 if you’re older than 50) for 2019, consider adding it there.
Required minimum distribution (RMD) suspended for 2020.Retirees will not be required to withdraw any amount from their retirement accounts, and no penalties will be assessed. Inherited IRA/Roth IRA’s are also included in the RMD suspension for 2020.
In addition to these, there are a number of relief programs for Small Employers and Sole Proprietor’s. If you need help accessing this information please reach out to me. There are also a number of good resources on the SBA's website; www.sba.gov
The pace of how fast things have moved in the past few weeks has been breathtaking. Form the spread of the virus itself to the stock market’s reaction and government stimulus is (being repetitive) unprecedented. I will reiterate that if you would like to review your financial plan please do not hesitate to reach out - We are here to help.
Stay safe & this too shall pass!