Broker Check


April 08, 2020

I have been thinking about you and I know you have been inundated with information these days on the Pandemic, but I wanted to highlight some important information for you about the Federal Coronavirus Relief Act (CARES ACT). Please consider this information and how it might impact you!

 Relief Cash Payment

  • Individuals earning less than $75K will receive a payment of $1,200 and a Married couple earning less than $150K will receive a payment of $2,400 plus $500 per child.

 The payment amount phases out from $75K - $99K for an individual and disappear completely for income over $99K. For a married couple the phase out is from $150K - $198K and disappears completely for income over $198K. (

 Required Minimum Distributions (RMDs)

  • You are NOT required to take a distribution this year from your retirement accounts (401K or IRAs) EVEN if you are turning 72 this year. The IRS will not require you to take the RMD even if you have been taking them for years, this includes Inherited IRA’s, (Beneficiary IRA’s).

 IF you took your RMD within the last 60 days you can recontribute it back into your account without tax penalty.

 Why is this important - As we have experience a decrease in our investment accounts due to the recent market volatility, declining to take your RMD this year, will allow the money to stay in the account and hopefully as the markets gain strength so will your investments

.Retirement Account Distributions - The act also allows for distributions from retirement accounts (IRA or 401ks) for up to $100,000 without a 10% penalty if you are under age 59 1/2 for the following circumstances:

 You, your spouse or a dependent has been diagnosed with COVID 19

  • You have suffered a financial hardship as a result of the Pandemic. This could include loss of wages, reduced hours, being unable to work because of childcare issues or other issues beyond your control resulting from the Pandemic. * Important for you to note that this is retro-active to January 1, 2020.


Distributions this year that may have been subject to a penalty will no longer incur a penalty.


The distributions will still be subject to taxes! HOWEVER, the taxes can be spread out over a Three (3) year period. (Please consult your tax advisor for specific questions on the tax implications of any retirement plan distributions). These limits extend to the end of 2020! (

 Tax Filing Deadline Extended - The tax filing deadline for 2019 tax returns is extended to July 15.

 IRA contribution Extension - You can also make IRA contributions up to July 15. SO if you haven’t made a contribution and you are considering it, let’s talk!

 Student Loan Relief - All student loan and interest payments are deferred or suspended from March 13 through September 30 and will not incur any penalties. Also, NO interest will accrue (

 Small Business Loan Aid - The act also provides aid to small business, if you would like more information on this please contact me.

 If you would like to discuss the CARES Act and its impact on your investments, you can schedule a Zoom call with me!

 Remember we are all in this TOGETHER and know that we are here for you!

 ~ Sincerely,

Jessica L McCrory and Daryl E King

New Beginnings Wealth Advisors