Asset Planning, Inc Blog

The latest from the team.
Font size: +
3 minutes reading time (532 words)

CARES Act Stimulus Summary

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020. This is a $2 trillion emergency fiscal stimulus package to help reduce the economic damage caused by the virus and “stay at home” policies. The following is a summary of the main provisions for individuals.

Recovery Rebates:

  • The CARES Act provides for recovery rebate checks of up to $1,200 for individuals with adjusted gross income (“AGI”) up to $75,000 ($2,400 for joint filers with AGI up to $150,000) plus an additional $500 for each child under the age of 17 for US taxpayers through an advance refundable tax credit against 2020 income taxes. There is a phase out of the rebate, which causes a $50 reduction in the rebate for every $1,000 of AGI above these thresholds. For example, individuals with no children having an AGI of more than $99,000 and married couples with no children filing jointly having an AGI of more than $198,000 would be phased out completely and receive no recovery rebate check. The advanced payment of the recovery rebates will be based on the AGI reported on tax returns filed for 2019, and if no such tax return has been filed for 2019, the AGI reported on the 2018 filed tax returns will be used.
    • The rebate check will be sent directly to the bank account on file with the IRS for your 2019 or 2018 tax return. If the account is closed or there is no account on-file then a check will be mailed.
    • You can receive the rebate if you are retired and receive social security or a pension as long as your AGI is within the limits listed above.

Retirement Accounts:

  • Required Minimum Distributions are waived in 2020 for all retirement type accounts (401K, 403B, 457, IRA and Beneficiary IRAs). If you already took part or all of the RMD you might have the option of returning them except for beneficiary IRA distributions.
    • We are waiting to hear more details on the charitable contributions that are paid with RMD funds and we will be in contact with those clients that make charitable contributions from their RMDs to let them know their options for 2020.
  • Individuals under age 59 ½, may take coronavirus-related distributions from qualified retirement plans (IRA, 401K) of up to $100,000 without the distributions being subject to the 10% early distribution tax. The distributions are still subject to federal income tax, but the tax owed can be spread over three years.
    • In order to get these favorable terms, you will have to prove that you were adversely affected by the coronavirus.


  • Regular unemployment payments, which are about 55% of your normal pay are increased by $600 per week for a maximum of 4 months. The benefit period is also extended by 13 weeks. It is normally 26 weeks maximum in California, so it can now go to 39 weeks.

There are also several small business and self-employed benefits provided by the CARES Act. We recommend that you discuss with your accountant or business manager the different options and if you should apply and take advantage of them.

Hope you are staying safe, sane, and healthy!

Stay Informed

When you subscribe to the blog, we will send you an e-mail when there are new updates on the site so you wouldn't miss them.

Record Retention: Keep it or Toss it
New Tax Deadlines

Search Blogs Module

Wait a minute, while we are rendering the calendar
January 10 news coverage TD Ameritrade Social Security Administration emergency kits home mortgages estate Medicare Advantage Kiplinger Letter checklists client portal IRS borrowing money notary services 900 number interest chip-enabled EMV cards assets coronavirus Erin Nelsen June 29 FSA Orange County Superior Court Kraig Mathias vacation phishing sites consumer spending executive order summer 2017 TD Ameritrade National LINC Conference 2017 Equifax breach Roth IRA credit freeze markets house sitter settlement options Medicare plan scams tax deadlines integral member pet industry drive /usb cell phone SIM swap scam September 8 Asset Planning 4 pm -8pm records tax season February 14 student loans increase interest rates credit score account numbers stock pile Wells Fargo customers 20 year anniversary pets credit cards ice cream information Facebook September 30 2020. identity thieves tax deadline policy clients show support Victor Dergunov tax records wells Fargo estate planning 23 andme business hours earthquake app Amazon privacy settings July 4 debt spread cell phones emergency kit Orange County web address tax returns Medicare Part B donation items company CFP ® Retirement Contribution Limits 2017 IRA contributions Supplemental Security Income Fox News story Economic Security Medicare items payments https :// Auto insurance family members president Trump opt-out Independence Day Federal Trade Commission website July 6 July 3 rd earnings fallout app clients credit card fraud Charles Schwab identity theft Flexible Spending Account retirement donation counts fees Brexit vote IRA accounts trust official certification ice cream event retirement planning operations manager Facebook profile April 15 Part B Mobile Banking Security Tips 2018 IRA contributions home market turmoil flash drive Legal robocalls life saver Coronavirus Aid birth certificates Healthcare credit card company hurricane Dorian rescue organizations D premiums retirement plans September 9 July weekend disaster areas DNA test kits driver license insurance policy cell phone carriers blog post phishing scams people medications estate planning direction April 11 fun facts years text messages paperwork clutter Social Security card reader Labor Day memorial Day weekend holidays approach check lists illiegal robocallers trustee contribution limit emergency folder relief efforts home security tax filing deadlines ID card breach Ice Cream Social California Lions Friends documents Shred paperwork IRS deadline Medicare Part B premiums Joey Gonzales EEChecklist-Kits.pdf stockpilingchecklist.pdf credit monitoring service Open Enrollment gap insurance privacy notices insurance policies COVID -19 virus October 1 2020. spam phone email notifications Treasury Department Two-Step Verification offering insurance home break-ins parking spots money National Ice Cream month pet donation drive cell phone provider Financial Planning Magazine Wells Fargo employees car loans spring cleaning non-prescripstion sunglasses home emergency kit health care costs https ://seekingalpha media accounts fun atmosphere padlock pet supplies “ skimmer ”. Puerto Rico stimulus package Notary Public team members VOIP landline phones phone companies clone counterfeits Affordable Care Act jury duty April 18 2017. CERTIFIED FINANCIAL PLANNER exam information phone 401K Part D premiums . asset Planning paper records Medicare question banking self-help topics home emergency preparedness kits 70 1/2. cell phone service provider investment statements vision screening FEMA website toilet paper portal CA FTB Open House retirement accounts partner /owner bottom line health care services prescription eyeglasses pet water … cell phone carriers offer CARES Act Expired medications