John Cortale Highlights Key Provisions within the CARES Act and Stresses the Importance of Long-Term Planning
WASHINGTON, June 04, 2020 (GLOBE NEWSWIRE) -- In March 2020, in response to the Coronavirus pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The unprecedented stimulus package is meant to provide economic relief to small businesses, individuals and families. “This stimulus package offers much needed financial assistance to businesses and individuals, with 75% being allocated to companies and 25% to individuals below the set income threshold,” says John J. Cortale, Senior Vice President and Managing Director of the Cortale Group at LPL Financial. “As unemployment rates are expected to be as much as 20% nationwide by the end of Junei, Americans need to understand how the CARES Act can benefit them.”
The Cortale Group continues to stress the importance of long-term financial planning. “Although the pandemic has surely caused a bump in the road to meeting your financial goals, it should not deter anyone from maintaining their long-term view. The CARES Act can be seen as a tool to help maneuver through this rough patch,” says John Cortale. The Cortale Group works closely with their clients to navigate and understand key provisions within the CARES Act that will help them stay on track to meet their overall financial objectives in the long run.
Americans with a gross income up to $75,000 ($150,000 if married) are eligible for a stimulus check of $1,200 ($2,400 if married). Additionally, they are eligible for an extra $500 per child. Those eligible to collect unemployment will see an increase of $600 per week in their benefits for up to four months.
In regards to retirement planning, individuals are provided an exception to the 10% early distribution penalty for withdrawals up to $100,000 for those under 59 ½ that are impacted by Covid-19. Perhaps most importantly, Required Minimum Distributions (RMDs) are waived for 2020. “With proper planning, this can help significantly with tax planning come early next year,” says John Cortale. “This will also give retirement account balances more time to recover before RMDs resume next year.” Additionally, participants in qualified plans who are impacted by Covid-19 may borrow 100% of their vested account balances, up to $100,000, until September 2020. If participants have existing loans, they will be allowed to delay their loan repayments by up to one year.
Although not directly related to the CARES Act, the deadline for 2019 federal tax filing and IRA Contributions has been extended to July 15, 2020. Additionally, many states have also extended their tax filing deadlines to July 15th.
About Cortale Group
John Cortale and his team at The Cortale Group focus on the long-term goals and objectives of their clients and build strong relationships by listening to each and every client’s unique financial situation and using their Complete Confidence Retirement Plan approach when developing their financial plan. They help their clients develop, implement, and monitor a strategy that helps provide a road map that works toward financial stability and wellbeing. For more information, please visit: www.thecortalegroup.com
Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC. The Cortale Group and LPL Financial are separate entities.
The Cortale Group at LPL Financial, 1010 Wisconsin Ave NW, STE 303 Washington, DC 20007