Simplify lead generation, improve your digital presence, and generate new business with digital marketing technology designed to help you accelerate growth.

Welcome to
Heart of Advice

a new source of expert insights for
financial professionals.

Get Started

Tips specific to the eMoney platform can be found in
the eMoney
application, under Help, eMoney Advisor Blog.

eMoney Logo
Magnifying Glass Icon
Mobile Menu Icon Close Mobile Menu Icon
Arrow Icon

Heart of Advice

Insights and best practices for successful financial planning engagement
Learn more

Back to All Articles

Explore Our Categories

eBook - Power to the Plan: The (R)evolution of Financial Advice

READ NOW

Coronavirus Aid, Relief and Economic Security Act: What You Need to Know

eMoney Communications Team March 27, 2020

The Senate and House of Representatives have passed the Coronavirus Aid, Relief and Economic Security (CARES) Act. The roughly $2 trillion coronavirus response bill is intended to keep businesses and individuals afloat during this unprecedented time.

While this legislation addresses many problems arising from the pandemic, we wanted to point out a few aspects that could directly affect the financial plans you create for your clients:

  1. Individuals earning up to $75,000 a year will be eligible for a $1,200 check. Reduced checks will go out to individuals making up to $99,000 a year (the payment amount falls by $5 for every $100 in income above $75,000). Married couples are eligible for a $2,400 check as long as their adjusted gross income is under $150,000 a year. Reduced checks, on a sliding scale, will go out to married couples who earn up to $198,000. Individuals and married couples also will receive an additional $500 for every child under 17. This is based off of either 2018 or 2019 tax filings.
  2. The 10% tax penalty on premature distributions of up to $100,000 from qualified retirement accounts has been waived for 2020 for “coronavirus-related” purposes. The regular taxes on these withdrawals can be paid over three years. In addition, any funds withdrawn may be re-contributed to the plan within three years regardless of contribution limits for that year.
  3. RMDs are waived for certain retirement plans and IRAs for 2020. This applies to everyone—not just those affected financially by coronavirus illnesses.
  4. For those taxpayers who do not itemize deductions (only 8% itemized in 2018), they may deduct up to $300 of charitable contributions which will be an above the line deduction. This new rule applies to all years and not just 2020.
  5. The 60% AGI limit on gifts to public charities is increased to 100% of AGI for 2020. All carryforward rules apply as normal.

During times of disturbance and uncertainty, proactively engaging clients can help to secure their trust in you and help them not to lose sight of the plans you have put in place to protect their future.

Stay tuned for further communications on the CARES Act and watch our on-demand webinar, Planning Opportunities in Today’s Changing Regulatory and Market Environments. In this session we’ll review recent legislation related to the SECURE Act and CARES Act, and their incorporation into eMoney’s financial planning software.

*CE Credits not awarded for watching the replay.

 
About the Author

The eMoney Communications team is dedicated to helping users find the most efficient and impactful ways to plan for their clients, while striving to make basic and advanced financial planning accessible for all.

You may also be interested in...

gaining client trust in AI and big data

AI and Big Data: Solidifying Client Trust in Game-Changing Technology

It’s been said that data is the new oil of the digital economy. It’s true that data flows through all… Read More

advisor expanding the planning business model

How Financial Professionals Can Expand Their Business Models for Greater Growth

“Holistic financial planning” is a phrase you’ve likely heard frequently this year regarding the future of financial advice and what… Read More

Financial Planning Research

Financial Planning Research Roundup: December 2020

COVID-19 was an all-pervading force in the financial services industry in 2020, accelerating digital transformation and adoption in all aspects. Read More

Webinar - Financial Planning During the COVID-19 Economy - 1 CFP® CE Credit

Join us as we discuss how clients can maximize their use of savings and investment vehicles to meet their financial goals in the COVID-19 economy. Thursday, February 4th, 2021 from 2:00 p.m. ET

REGISTER NOW
Webinar - Financial Planning During the COVID-19 Economy - 1 CFP® CE Credit

Join us as we discuss how clients can maximize their use of savings and investment vehicles to meet their financial goals in the COVID-19 economy. Thursday, February 4th, 2021 from 2:00 p.m. ET

REGISTER NOW

Sign up to have the most popular Heart of Advice posts delivered to your inbox monthly.

Sign up to have the most popular Heart of Advice posts delivered to your inbox monthly.

Heart of Advice by eMoney Advisors

Welcome to
Heart of Advice

a new source of expert insights for
financial professionals.

Get Started

Tips specific to the eMoney platform can be found in
the eMoney
application, under Help, eMoney Advisor Blog.