In response to coronavirus, the CARES Act has been passed. What will this mean for you and your financial planning? Let’s look at the three biggest provisions in this stimulus bill.
(Click the featured times below to jump forward in the episode)
The CARES Act has brought about a lot of provisions that will likely impact you and your finances. On today’s episode of Cover Your Assets KC, David goes over three key provisions you’ll want to know about (plus a bonus one at the end).
Let’s start with one you’re likely looking forward to–free money deposited into your checking account. How much will you get? How will they know where to send it? David outlines some of the specifics so you know what to expect from the stimulus check to help during coronavirus.
When it comes to taxes, the April 15 deadline has been extended until July 15. This means you have extra time to file taxes, extra time to pay taxes, and extra time to make a 2019 IRA contribution. What if you have been paying taxes quarterly?
Required minimum distributions are when the IRS makes you take distributions out of your retirement plans. Since the market is down so far right now, you now have the option to not take your RMDs out this year. What happens if you’ve already taken out some of your RMDs this year? What about inherited IRAs?
Finally, have you heard about what the CARES Act did with the REAL IDs? With all of the social distancing happening, REAL IDs are now being given an additional year before they are required for travel purposes in October of 2021.
Listen to the full episode or click on one of the provisions below to hear more.
[2:11] – What are three key provisions in the CARES Act?
[3:14] – Free money will be deposited into the bank accounts of most Americans.
[7:21] – The tax filing deadline has been bumped back to July 15.
[10:51] – RMDs are not required this year.
[14:33] – Bonus: REAL IDs will have another year before being required for travel.