COVID-19 Webinar: The First Stimulus Bill
In this webinar, John and his partner Edward Bao, CFP®, AIF® discuss the three phases of the Federal Government’s stimulus bill. Particularly they discuss how it may impact small business owners.
John is the author of 5 Ways Your Wealth is Under Attack and It’s Your Wealth – Keep It.” He has lectured extensively on financial planning and is a recipient of the Five StarSM Wealth Manager Award.
Don’t miss these important takeaways:
Nearly everyone will benefit from the Federal Government’s stimulus package.
-
Families earning up to $150,000 will receive a $2,400 check or direct deposit to your checking account if you pay your taxes electronically. That should come in the next three weeks.
-
Individuals on Social Security will also receive those disbursements—in the amount of $1200.
-
The stimulus relaxed the rules for IRA withdrawals
-
It expanded 401(k) loans.
-
And removed the Required Minimum Distributions (RMDs).
-
It waived payments on student loans and suspended interest until September 30th.
-
Also, unemployment benefits will increase by $600 per week over the next four months.
-
The stimulus package also earmarked $500 billion to help distressed big businesses.
-
$349 billion has been set aside for small business relief.
More detail on some of the above points:
-
You are able to withdraw $100,000 from your IRA. You are able to repay it over three years without incurring any penalties or tax payments. Watch to the webinar for the pros and cons.
-
Typically you can borrow $50,000 from your 401(k) and repay it over five years. Now you can borrow $100,000 and pay it within three years with zero tax liability. Watch the webinar for the potential repercussions.
-
In 2019 the Secure Act raised the age for Required Minimum Distributions to 72 (from 70 ½). It set a 50% penalty plus taxation on your distributions.
Plus:
-
Additionally, small businesses can get a loan of 2 ½ times their monthly businesses expenses. This includes payroll, employee healthcare, mortgage/rent, utilities, and debt. Watch the webinar to get links to the best Small Business Administration banks.
-
Also, employers can defer their FICA payments.
-
Also, employers get a tax credit against the Social Security tax equal to the Sick and Family Leave payment.
-
People who work for small businesses and have worked for at least 30 days, can take 12 weeks of job-protected leave.
On March 15, the Federal Reserve put interest rates at zero. They also launched the $700 billion quantitative easing program. This program puts liquidity into the markets to get our economy moving again.
Worldwide coordination on the economy is unlike anything we’ve ever seen. Japan, Germany, France, Italy, Spain, the UK—everybody is coming together. Stimulus loan guarantees are pushing more and more money into the economy. This keeps banks moving, to keep businesses moving, and to keep people paid.
This is encouraging.
For details, watch here.
If you are new to Smallwood Wealth schedule a Wealth Curve Conversation here.
You can also connect with us on social media, or call us at (800) 797-1000. Set up a free, no-obligation 30-minute phone call with an advisor to discuss your financial plan. Let’s discuss what you can do in the face of the financial uncertainty brought about by COVID-19.
Podcast: Play in new window | Download
Subscribe: RSS
