Two weeks ago, we provided a breakdown of the newly-enacted Coronavirus Aid, Relief, and Economic Security (CARES) Act. Since this Act became law, there has been several significant expansions and government responsive actions of which you should be aware:
Federal and State Tax Filing and 2019 IRA Contribution Deadline Extended – The Treasury Department and the IRS announced that the deadline for filing and paying 2019 federal income taxes (without interest or penalties) has been extended to July 15, 2020. Likewise, Maryland has extended its deadline for individual income state tax returns and payments to July 15, 2020. Additionally, 2019 IRA contributions may be made until July 15, 2020.
Required Minimum Distribution WAIVED for 2020 – The Setting Every Community Up for Retirement Enhancement (SECURE) Act was signed into law in December 2019. This new law was aimed at increasing access to tax-advantaged accounts and preventing older Americans from effectively outliving their assets. Among other things, the SECURE Act increased the required minimum distribution (RMD) age for retirement accounts up to age 72. In response to the CARES Act the unprecedented COVID-19 pandemic, the requirement to take RMDs in 2020 is waived.
Stimulus Checks Are Coming – For many Americans, stimulus checks will arrive soon. Treasury Secretary Steven Mnuchin has said most Americans will receive their stimulus check by April 17, and Director of the U.S. National Economic Council Larry Kudlow said checks will start going out this week or next. According to the Washington Post, funds could be direct deposited beginning today.
To view the full text of the historic CARES Act, visit congress.gov.
For information on how to protect yourself and your loved ones against COVID-19, visit CDC.gov.