RMD (Required Mininum Distribution) Changes for 2020
1) If you were supposed to start your RMD this year, you can wait until the year you turn 72.
2) RMD requirements have been suspended for all in 2020 per the CARES Act
3) Individuals taking early distributions will have the 10% penalty waived** (still taxable at income levels).
**please seek guidance on taking money early from a retirement plan and how it affects your future income and retirement timeline
Hero Pay for Front Line Workers
Thank you to our front line heroes during this time!
1) Hazard Pay has been an ongoing discussion during COVID 19
2) Proposals for hazard or hero pay have been discussed (but not passed).
3) Employers would have to apply on behalf of their employees. Up to $25,000 with income limitations.
4) Front line are nurses, doctors, janitorial staff, grocery store workers, and various types of transportation workers. (essential)
*still in early stages
Business Owners Resources
Business Owners can apply for various loans through SBA and local banks.
***click here for SBA website and direct info***
1) SBA loan with no/low fees and interest rates between 2.5 - 3.5 (direct with government on SBA website)
2) Payroll Protection to cover payroll costs, partially forgivable if used primarily for payroll. (available through banks.)
3) Look to your state agencies for available loans. Various states have rolled out loan packages.
4) Prepare to wait!
Offered Severance or Buyout?
Company's are known for offering severance, buyouts, or early retirement packages in times of financial uncertainty.
1) Evaluate severance package terms and conditions.
2) Ask questions regarding unemployment and verbiage of severance to your HR department.
3) Lump sum payout vs paid as payroll - lump sum may allow for unemployment benefits.
4) Know that the HR department serves the the company and has the company's interest at heart, get outside advice!
5) You are now eligible to take your 401K, TSP, 403B and retirement savings and produce income and/or invest those monies in a way you and your financial adviser design.