This article provides two tips to navigate the options from the recently-passed CARES Act.
We understand many people are facing a great deal of physical, emotional, and financial stress due to the recent circumstances related to COVID-19, you are not alone. The CARES Act was signed into law on March 27, 2020. This is the coronavirus-relief legislation that will make it easier for people to access their retirement savings without penalty. Here are some tips to help you navigate your options:
1. CARES ACT Tip 1: Retirement Plan Loans - The loan limit has increased from $50,000 to $100,000. Having cash on hand can be valuable, but don’t disrupt your long-term plan to get it. Just because you can, doesn’t mean you should. This money has to be paid back eventually, or later taxes are due.
2. CARES ACT Tip 2:Stimulus Check - Americans who pay taxes will receive a one-time stimulus check of up to $1,200, and married couples will receive $2,400, plus an additional $500 per child. The payments will be available for incomes up to $75,000 for individuals and $150,000 for married couples. If you don’t need those funds for essential expenses today, allocate this to your emergency fund for a rainy day.
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