Coronavirus Aid, Relief, and Economic Security (CARES) Act

Finance | Provided by Cornerstone

We hope you are staying safe and healthy during this unprecedented period. Times like this require steady resources and provide opportunity to lean on the strength and comfort of family and community – both professional and personal. Committed to partnering with you through familiar and unfamiliar challenges, Cornerstone is here for you.

To this end, we will be regularly posting updates (as they come available) to the various changes that are occurring in our day to day lifestyles and the legal regulations that are dynamically adapting to the current unpredictability we are all living through. In doing so, we hope that you will continue to reach out, provide feedback, and join our ongoing conversation, sessions, and informational pieces we are curating.

In response to the COVID-19 pandemic, the government has enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act. We will be highlighting some of the provisions here on our insights page that affect our work with our clients, but as always, please reach out to your advisor with specific questions.

Here are the changes that we plan to give more detail on over the coming days and weeks: 

1. Waiver of Required Minimum Distribution (RMD) for 2020

2. Withdrawals up to $100,000 from Retirement Accounts not subject to the 10% penalty

3. Maximum Loan amount from employer plans increased to $100,000

4. New $300 above-the-line deduction for cash contributions to qualified charities

5. AGI limit on cash contributions to qualified charities increased to maximum of 100% of AGI

6. Student Loan payments deferred until September 30, 2020

7. Small Business Loans with forgiveness provisions 

*This is just a sampling of the extensive legislation that is 335 pages long. Our friends at Deloitte have released a report with more details that you can find here.

 

Please see important legal disclaimers pertaining to this post by clicking here.



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