COVID-19 Resources

↓ I've been laid off. What should I do with my 401(k) from my previous employer?

There are several options: You can leave it where it is, move the money to another account like an IRA, or move it to a new employer's plan. If done correctly, you can avoid tax or penalty. Visit the 401(k) page for more details. Click here to set up a free visit or phone consultation.

↓ Should I adjust my investments due to the recent stock market drop?

It depends. Some factors to consider are 1) when you will need the money 2) the purpose of the money 3) how it's currently allocated 4) your tolerance for volatility and 5) your overall plan. Start with the risk tolerance assessment. If you'd like to set up a free visit or phone consultation, click here.

↓ I’ve been laid off and I was nearing retirement. Now I’m afraid I won’t be able to get another job and I’ll be forced to retire early. What should I do?

Consult an advisor to determine whether you can retire now and what rate of annual spending is sustainable. Contact us to set up a complimentary consultation.

↓ Do I need to take an RMD this year, from my IRA or 401(k)?

No, even if you are 70-1/2 or over, you do not need to take a required minimum distribution (RMD) this year, and you will not be assessed a penalty.

↓ Can I take money out of my 401(k) or IRA if I’m under 59-1/2?

Yes, with conditions. You are permitted to withdraw up to $100,000 from your 401(k) or IRA account, on a per person (not per account) basis, regardless of your age. Per section 2202 of the CARES act: “It is optional for employers to adopt the distribution and loan rules of section 2202 of the CARES Act. An employer is permitted to choose whether, and to what extent, to amend its plan to provide for coronavirus-related distributions and/or loans that satisfy the provisions of section 2202 of the CARES Act. Thus, for example, an employer may choose to provide for coronavirus-related distributions but choose not to change its plan loan provisions or loan repayment schedules. Even if an employer does not treat a distribution as coronavirus-related, a qualified individual may treat a distribution that meets the requirements to be a coronavirus-related distribution as coronavirus-related on the individual's federal income tax return. See section 4.A of Notice 2005-92.” If you would like more information or interpretation of these rules, or you would like me to help you discuss this with your employer’s HR representatives, contact us.

↓ Will I have to pay a penalty for the early withdrawal described above?

No, not if you qualify. An individual qualifies for the exemption under section 2202 of the CARES Act, in the following circumstances (this is directly from the IRS website):

• You are diagnosed with the virus SARS-CoV-2 or with coronavirus disease 2019 (COVID-19) by a test approved by the Centers for Disease Control and Prevention;

• Your spouse or dependent is diagnosed with SARS-CoV-2 or with COVID-19 by a test approved by the Centers for Disease Control and Prevention;

• You experience adverse financial consequences as a result of being quarantined, being furloughed or laid off, or having work hours reduced due to SARS-CoV-2 or COVID-19;

• You experience adverse financial consequences as a result of being unable to work due to lack of child care due to SARS-CoV-2 or COVID-19; or

• You experience adverse financial consequences as a result of closing or reducing hours of a business that you own or operate due to SARS-CoV-2 or COVID-19.

↓ Will I have to pay tax on the early withdrawal from my IRA or 401(k)?

Yes. However, a coronavirus-related distribution under the CARES Act can be included proportionally in the qualified individual’s taxable income over a three-year period, unless the individual elects to have it taxed in the year of distribution. In addition, the distribution will not be treated as an eligible rollover distribution, so the mandatory 20% withholding will not apply.

↓ Am I eligible for the Economic Impact Payment from the government?

To find out, visit the IRS website: https://www.irs.gov/coronavirus/economic-impact-payments

↓ What should I do if I haven't received my Economic Impact Payment from the government?

Visit the Economic Impact Payments page on the IRS website to check your payment status and make sure they have your bank information on file.

↓ Should I stop contributing to my 401(k) or IRA accounts?

Not unless your employment situation has changed and you are in need of additional cash flow. If you can afford to, keep contributing, and consider increasing your contributions—especially if you aren’t retiring anytime soon. Make sure your portfolio is properly diversified and aligned with your risk tolerance, though. If you’re not sure, consult your advisor or, visit our “Get Started” page for a risk tolerance assessment.

↓ I'm having trouble paying my mortgage. What should I do?

Many people are currently covered by a moratorium on foreclosure or eviction. Contact your mortgage servicer to see what programs are available. Click here for more info.

↓ What is the Paycheck Protection Program (PPP)?

The PPP is a forgivable loan from the U.S. Small Business Administration. Its purpose is to keep small business workforces employed during the COVID-19 pandemic. If employees are kept on payroll for (8) weeks and the money is used for payroll, rent, mortgage interest, or utilities, it will not have to be repaid. For more details on the PPP, visit the SBA website. Also see the PPP FAQ pdf, here.

↓ I am a sole proprietor or self-employed. Am I eligible for the PPP?

Yes. For more details, click here and scroll down to the "who can apply" section.

↓ My business never got any money from the PPP. I heard funding ran out. Is there more coming?

The president approved a second round of funding, signing the $484 billion coronavirus relief bill, on Friday, April 24, 2020. This allots $370 billion in aid for small businesses. $310 billion is specifically set aside for the Paycheck Protection Program, according to CNBC. SBA is expected to resume accepting applications Monday, April 27th, at 10:30am eastern time.

↓ When do I need to file my 2019 taxes?

Go to the IRS website.