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19 May
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Tips on How the CARES Act Offers Important Tax Incentives and Planning Opportunities

Posted by Bobby Feisee
in Bobby's Blog, News

The historic $2.2 trillion CARES Act contains an array of favorable provisions for individual taxpayers, but many of those provisions are only available in 2020. Nevertheless, there are also a number of lesser-known provisions that can be utilized for effective long-term financial planning and tax benefits. Withdrawing Funds from Your IRA Without Enduring Harsh Tax Penalties The CARES Act allows eligible individuals to take up to $100,000 of distributions from their Individual Retirement Account (IRA) or employer-sponsored retirement plan (e.g., 401k) during 2020 and receive the following relaxed tax rules: Exempt from the 10 percent early withdrawal penalty that would otherwise apply to individuals who withdraw funds from their IRA who are younger than 59 1/2. Individuals have the option to include all of the income from the distribution in 2020 income, or have it split evenly over three years (2020 thru 2022). You can repay the withdrawal any time during a...

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10 April
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How Can I Get a Paycheck Protection Program Loan?

Posted by Bobby Feisee
in Bobby's Blog

One of the key provisions of the landmark CARES Act is the Paycheck Protection Program. Congress allocated $350 billion to this program enabling the Small Business Administration to provide loans to small business owners. The loans are fully guaranteed by the federal government. If you are interested in applying for a loan through the Paycheck Protection Program, here is the application in a fillable PDF format.  Objective of the Paycheck Protection Program The primary objectives of the Paycheck Protection Program include: Provide assistance to businesses so they can retain their employees; and Help businesses cover near-term operating expenses during the Coronavirus pandemic. Who is Eligible for a Loan Through the Paycheck Protection Program In evaluating the eligibility of a borrower through this program, a financial institution is required to consider two prerequisites: (i) whether the borrower was operational as of February 15, 2020 and (ii) whether the borrower had employees or independent contractors for whom...

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