Monthly Archives

April 2020

Key Provisions of the CARES Act

By | Advice, News

Recently, the $2 trillion “Coronavirus Aid, Relief, and Economic Security” (“CARES”) Act was signed into law. The CARES Act is designed to help those most impacted by the COVID-19 pandemic, while also providing key provisions that may benefit retirees.1

To put this monumental legislation in perspective, Congress earmarked $800 billion for the Economic Stimulus Act of 2008 during the financial crisis.1

The CARES Act has far-reaching implications for many. Here are the most important provisions to keep in mind:

Stimulus Check Details. Americans can expect a one-time direct payment of up to $1,200 for individuals (or $2,400 for married couples) with an additional $500 per child under age 17. These payments are based on the 2019 tax returns for those who have filed them and 2018 information if they have not. The amount is reduced if an individual makes more than $75,000 or a couple makes more than $150,000. Those who make more than $99,000 as an individual (or $198,000 as a couple) will not receive a payment.1

Business Owner Relief. The act also allocates $500 billion for loans, loan guarantees, or investments to businesses, states, and municipalities.1

Your Inherited 401(k)s. People who have inherited 401(k)s or Individual Retirement Accounts can suspend distributions in 2020. Required distributions don’t apply to people with Roth IRAs; although, they do apply to investors who inherit Roth accounts.2

RMDs Suspended. The CARES Act suspends the minimum required distributions most people must take from 401(k)s and IRAs in 2020. In 2009, Congress passed a similar rule, which gave retirees some flexibility when considering distributions.2,3

Withdrawal Penalties. Account owners can take a distribution of up to $100,000 from their retirement plan or IRA in 2020, without the 10-percent early withdrawal penalty that normally applies to money taken out before age 59½. But remember, you still owe the tax.4

Many businesses and individuals are struggling with the realities that COVID-19 has brought to our communities. The CARES Act, however, may provide some much-needed relief. Contact your financial professional today to see if these special 2020 distribution rules are appropriate for your situation.


This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Under the CARES act, an accountholder who already took a 2020 distribution has up to 60 days to return the distribution without owing taxes on it. This material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Under the SECURE Act, your required minimum distribution (RMD) must be distributed by the end of the 10th calendar year following the year of the Individual Retirement Account (IRA) owner’s death. Penalties may occur for missed RMDs. Any RMDs due for the original owner must be taken by their deadlines to avoid penalties. A surviving spouse of the IRA owner, disabled or chronically ill individuals, individuals who are not more than 10 years younger than the IRA owner, and children of the IRA owner who have not reached the age of majority may have other minimum distribution requirements.

Under the CARES act, an accountholder who already took a 2020 distribution has up to 60 days to return the distribution without owing taxes on it. This material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Under the SECURE Act, in most circumstances, once you reach age 72, you must begin taking required minimum distributions from a Traditional Individual Retirement Account (IRA). Withdrawals from Traditional IRAs are taxed as ordinary income, and if taken before age 59½, may be subject to a 10% federal income tax penalty. You may continue to contribute to a Traditional IRA past age 70½ under the SECURE Act, as long as you meet the earned-income requirement.

Accountholders can always withdraw more. But if they take less than the minimum required, they could be subject to a 50% penalty on the amount they should have withdrawn – except for 2020.

Investment advice offered through American Wealth Management (“AWM”), a SEC-registered investment adviser. Certain personnel of AWM may also be registered representatives of M.S. Howells & Co. (“MSH”), Member FINRA/SIPC, a registered broker-dealer, and therefore, may offer securities through MSH. AWM and MSH are not affiliated entities.

Citations.
1 – CNBC.com, March 25, 2020.
2 – The Wall Street Journal, March 25, 2020.
3 – The Wall Street Journal, March 25, 2020.
4 – The Wall Street Journal, March 25, 2020.

COVID-19 Resources for Reno and Sparks Residents

By | Advice, News

In households, communities, and cities across the U.S., it feels like we’re not only building a car while driving down the highway, we’re also learning to drive.

Luckily, we’re all having the same experience. We’re in this together! Thank you to those who are working hard to make sure we all make it through these challenging times. 

While many people are helping on the frontlines, a lot of us are at home searching for ways to keep ourselves and our families fed, healthy, and safe. To help with that, we have compiled a list of resources to help local clients navigate life in Reno during the COVID-19 pandemic.

Reno Grocery Stores Offering Delivery or Online Ordering for Pickup

First up, let’s look at Reno grocery options. Many of the grocery stores have bolstered their delivery and pick-up options, making it both easier and safer to order food and supplies online.

Restaurant Delivery Options in Reno

It’s more important now than ever to support local restaurants. There are plenty of options in the Reno area that offer delivery through third-party delivery services like Door Dash and Grub Hub. You can explore all the options and order directly from the website or app using the links below.

If ordering delivery isn’t your thing, many local Reno restaurants have drive-thru options or have adapted their services to provide curbside pickup. You can find an up-to-date listing of those restaurants in the Reno Gazette-Journal article below.

Current COVID-19 Health Information

Do you have questions about current CDC guidelines, how Nevada is handling the pandemic, how to stay healthy, when and where to go for care, or statewide COVID-19 statistics? You can find those answers and more on the websites below.

Online Educational Resources

If you’re a parent, you may be feeling a little lost as to how to keep your kids entertained and learning while they are home. No matter what age your children are, there are plenty of free, or temporarily free, options available to help you establish a routine and keep their hands busy and their minds engaged and stimulated. 

Resources to Help with Stress, Anxiety, & Sleep

Even if you don’t need medical care due to direct exposure to COVID-19, we’re all feeling some level of stress and anxiety. Making time to address your mental health is just as important as staying vigilant in your avoidance of social gatherings and handwashing—especially if you aren’t sleeping well. From meditation and exercise apps to sleep sounds and read-alongs, the article below has a great list of resources that can help you reduce stress, sleep more, and improve your mental health. 

We hope some of these resources will help as you try to navigate this new national reality.

We have clients all over the U.S. and want to serve each of you the best we can. If you do not live in the Reno area and are looking for local resources, email dee@financialhealth.com to reach our Director of Customer Experience.

We are eager to help!

Investment advice offered through American Wealth Management (“AWM”), a SEC-registered investment adviser. Certain personnel of AWM may also be registered representatives of M.S. Howells & Co. (“MSH”), Member FINRA/SIPC, a registered broker-dealer, and therefore, may offer securities through MSH. AWM and MSH are not affiliated entities.