With stay at home orders continuing for the foreseeable future, the government passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to provide relief for individuals and businesses. Today we’ll look at the specific items that impact retirement, financial planning, and small businesses.
Click on the timestamps below to jump to specific topics.
As we turn the page to April, many people are feeling the effects of the coronavirus pandemic and the stranglehold it’s put on the economy.
Both individuals and businesses have taken enormous hits financially as many operations have been forced to shutdown and people are being asked not to leave home unless it’s essential. Now people are left to worry about income and jobs as we wait for the outbreak to ease up.
That’s why the government crafted a record $2.2 trillion stimulus bill that will help ease the burden that many people around Tennessee and the United States are feeling. The Coronavirus Aid, Relief, and Economic Security (CARES) Act will bring aid to individuals, businesses, and the economy through many different programs.
On this episode of The Financial Answer, we’ll break down a few of the key pieces that will impact retirees, financial planning, and small business owners. Thankfully the bill aims to help as many people as possible and inject some cash into the economy.
A few of the items we’ll discuss today are the changes to required minimum distributions in 2020, removal of a penalty for early withdrawals on retirement accounts, and the payroll protection program. The latter will be critical for small businesses and much of that money might be forgiven under certain circumstances.
Join us as we discuss each of these and try to give you as many details as we can find at this moment. Things continue to change on a daily basis so make sure you work with an advisor to stay updated.
And if you want to read the CARES Act, click here.
Listen to the full episode above or click on the timestamps below to skip around to specific topics.
1:30 – We’re talking about the CARES Act today and what it means.
3:13 – Let’s start with the retirement portion. No RMDs for 2020.
5:47 – If you need to pull money out of 401k or IRA, there’s no penalty for early withdrawal.
7:43 – Now is an important time to be in touch with an advisor to reassess your plan and see what you can be doing.
11:03 – Stimulus payments
14:24 – For small businesses, there’s a payment protection program.
15:52 – Who can apply for this relief?
17:05 – Here’s what we do know about this aid for small businesses.
18:26 – Details on what payroll costs consist of.
20:27 – Details on the forgiveness policy on these loans.
22:50 – The stimulus check is a one-time payment right now
24:18 – How long until things get back to normal?
25:34 – What are the conversations like with clients right now?
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