How Does the CARES Act Affect You?
Weber Group at Raymond James
Jul 17, 2020
Pennsylvania - Greater Pittsburgh Area
The Coronavirus Aid, Relief, and Economic Security (CARES)Act, is a piece of legislation that has been implemented to help aid those who have been financially affected during these unprecedented times. Many of the provisions are specific to retirement accounts.
CARES Act changes are:
Hardship Loans
The maximum loan amount that can be borrowed from an employer plan has been increased to $100,000 for affected individuals. Loan payments due in 2020 are also delayed until 2021.
Contribution Deadline
The IRA contribution deadline has been pushed back to July 15, 2020 along with the 2019 tax filing deadline.
Early Distributions
The CARES Act waives the 10% early distribution penalty for distributions of up to $100,000 from both employer and individual retirement accounts for individuals who meet any of the following requirements:
You, a spouse, or dependent has been diagnosed with COVID-19;
Experience adverse financial consequences as a result of being quarantined, furloughed, laid off, or having work hours reduced because of the disease;
Are unable to work because they lack childcare as a result of the disease; or
Own a business that has closed or operate under reduced hours because of the disease.
These distributions are not subject to mandatory withholding requirements, and the income from the distribution can be spread out over three tax years. Individuals have three years to return any or all of the distribution taken to the account.
Required Minimum Distributions
Required Minimum Distributions due in 2020 have been waived. This change applies to any distribution that needed to be taken in 2020. Some individuals may want to return their 2020 RMD to their account if they have already taken it. They can return all or a portion of the distribution to the account if they meet certain requirements. Also, 2020 is no longer counted for purposes of the 5-year rule. For non-designated beneficiaries either set to begin their 5-year distribution period, or for those already in the middle of it, 2020 can be skipped entirely.
Editors Note: This article was submitted by Erin Weber, CFP, Vice President, Investments with Weber Group at Raymond James.
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Weber Group of Raymond James
Financial Services 800 Cranberry Woods Drive, Cranberry Township, Pennsylvania, 16066Your financial goals, aspirations and investment needs are just that yours. And your financial plan should reflect that. So rather than ask you to settle for an off-the-shelf investment program, Weber Group at Raymond James is here to provide you with personalized financial planning based on your goals, your time frame and your particular tolerance for risk.We can provide you with just the right combination of financial services, support and guidance that make the most sense for you. Well also be there to help you each step of the way in the pursuit of your personal financial goals.Theres more to your financial life than just investments. Comprehensive planning encompasses an in-depth review and analysis of all aspects of your financial life to help you see the big picture and enable us to personalize a plan for addressing every detail.Our principal belief is that everything begins with a well-designed financial plan. Were highly adept at seeing the big picture of your financial life, and then addressing all the details that make the plan work including identifying and resolving any gaps that may have previously been overlooked.At Raymond James, we have a straightforward approach to doing business. We believe that putting clients needs first is the best way to ensure their success and, in turn, the long-term success of our advisors and the company. We call this our Service 1stSM philosophy. With our strong focus on clients and our commitment to supporting those who serve them, weve become known as the premier alternative to Wall Street, providing the products, services and support of even the largest firms, within an environment that values strong, personal relationships.Raymond James focuses on doing what's right for its clients, associates and communities. And as you'll find in the firm's Corporate Responsibility Report, this commitment drives our mission to build a more sustainable future for all through environmental, social and governance best practices.Sticking to our core principles of client first, conservatism, independence and integrity, Raymond James has steadily grown to become one of the largest independent financial services firms in the industry, but our core values ensure well never be so big that we dont have time for what matters most: you and your family.The markets change, but our values will always be the same. Client first is at our core, supported by conservatism, independence and integrity.Erin Weber is a vice president of investments with Raymond James, for the office in Cranberry, Pennsylvania. She is a founding partner of the Weber Group, a team within a team approach, at Raymond James. Erin works alongside her father, Senior Vice President of Investments Al Weber. Along with assistant, Katie Burr, the team strives to give clients a comprehensive investment experience by providing a high level of service, through shared expertise, for the individual and institution. With over 30 years of financial experience, there is a strong likelihood the team has interacted or worked with someone in a situation very similar to yours.She holds both bachelors and masters degrees from The Pennsylvania State University, along with the Series 7 and 66 securities licenses. Erin is a licensed agent for life, accident and health insurance. She has her Executive Certificate in Financial Planning from Duquesne University and is a CERTIFIED FINANCIAL PLANNER practitioner. Erin also is a Certified Personal Finance Counselor professional and a member of the Financial Planning Association. She has presented at international, national and state conferences in the field of education and co-authored multiple papers in the area of maximizing educator effectiveness. Based on her background in educational innovations, Erin strongly believes that she can best assist individuals and families by helping them understand the concept and elements of financial planning.Erin is advisory board president of Pennsylvania State University, New Kensington, and has mentored professionals and students from multiple universities. She is guiding several initiatives to help women and college students become financially literate and is the Vice Chairman of the Center for Financial Literacy at Penn State Behrend. Erin is a member of the Womens Leadership Council for the United Way, and volunteers at The Center for Women, Pennsylvania Women Work and Strong Women, Strong Girls. Because of her significant involvement in helping and mentoring women, she was a 2020 ATHENA Award nominee.She is very active in the area of physical fitness and won an international video contest promoting a healthy lifestyle. Erin also enjoys golfing and is a life-long resident of the Pittsburgh area, currently residing in Wexford, Pennsylvania.
Weber Group of Raymond James
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