CARES Act SummarizedSubmitted by Lifetime Wealth Strategies on May 7th, 2020
A Look at Major Provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act
The CARES Act is aimed at providing relief to the millions impacted by work stoppages, health concerns and financial hardship caused by the novel coronavirus. The CARES Act, which will impact nearly every American, consists of six main sections: employment, individual and business assistance, support for the health care system, economic stabilization, coronavirus relief funds, and miscellaneous provisions.
Click here for more details: CARES Act Summarized
- Non-taxable one-time payment: $1,200 to individuals, $2,400 to married couples, $500 per child, if adjusted gross income under $75,000 ($150,000 for married couples) or reduced $5 for every $100 over (single with kids, phaseout begins at $112,500), based on 2019 tax return or Social Security filings (or 2018 if you have not yet filed your 2019 taxes).
- Deadline to file taxes and make 2019 contributions to IRAs, Roth IRAs, and HSAs extended to July 15.
- Additional unemployment coverage and compensation and employee sick or medical leave benefits
- Healthcare Provisions including coverage of Covid-19 tests (test sites asking for cash are scams)
- Voluntary suspension of required minimum distributions (RMDs.) Your current payments will not change unless you request changes. You do not have to stop taking distributions. However, if you do not need the income now, you can leave the funds invested, or return funds to IRAs if taken within 60 days.
- Additional tax credits for charitable giving
- Federal small business loans which can be forgiven if payroll and other factors are met.
- Delayed payment of payroll and self employment taxes to free up short term cash flow.
- Special aid grants to universities/colleges to distribute to students impacted by closures
What is LIFETIME WEALTH STRATEGIES doing now?
- We are focused on what matters most to you and that may be different for each of you.
- We are identifying opportunities and reaching out to you when more investing or changes make sense.
- We have built your strategies to last your lifetime and your legacy beyond, and that has not changed.
- If you have short-term income needs not in your plan, call us and we will help you address those.
- Risk management, volatility mitigation, and responsible investing was our primary focus long before the recent market moves and we continue to monitor, review and adjust portfolios.
- We are making sure phones, computers, and communication remain functional and we can get your funds to you and review and adjust your portfolios as needed.
- We are social distancing and cleaning office areas before and after interactions, if unavoidable.
- We are utilizing e-signatures, mailing, or over-nighting if we need your physical signature (asking for drop and knock.) If you need to bring us something, we have a box at the front door from about 7:30am to 5:30pm (when someone is here to monitor and retrieve) to reduce risk to you.
When will things return to normal?
The only constant is that things are constantly changing. That is what makes life interesting.
We are here for you and will continue to be for your lifetime and, for those you care about, beyond.
Please call us if you want to talk.
Your LIFETIME WEALTH STRATEGIES Team,
Scott, Evan, Adam, Jeremy, Lori, Marci, Sarah
Securities offered through IFP Securities, LLC, dba Independent Financial Partners (IFP), member FINRA/SIPC. Investment advice offered through IFP Advisors, LLC, dba Independent Financial Partners (IFP), a Registered Investment Adviser. IFP and LIFETIME WEALTH STRATEGIES are not affiliated.