COVID-19 Financial Updates

In this quarantine edition of The Cautious Investor, Ryan Glinn with W3 Wealth Management, gives us financial updates pertaining to the COVID-19 crisis.

“COVID-19 has impacted a lot of us,” Glinn says. “Help is on the way.”

The IRS has extended the tax-filing deadline to July 15. IRA and HSA contribution deadline has also been moved to July 15.

The $2.2 trillion CARES Act is providing relief through stimulus checks and changes to unemployment benefits. In addition, there are other provisions in the stimulus package that are providing relief involving 401k hardship withdrawals, 401k loans and required minimum distribution.

Hardship withdrawals – the emergency removal of funds from a 401k – are permitted without the usual 10 percent penalty, up to $100,000. However, one must be able to provide proof of hardship such as a lack of access to child care or being furloughed.

For those with 401k loans, payments may be delayed for one year.

Required minimum distribution from retirement accounts has been suspended, allowing investors to let their accounts recover from this volatile market.

For any clarifications regarding the provisions in the CARES Act or how they may pertain to you, Glinn recommends that you contact your financial professional.

Copyright 2020 The Business Journal, Youngstown, Ohio.