- The federal income tax deadline for filing 2019 tax returns has changed from April 15 to July 15, 2020. The deadline for making 2019 IRA and HSA contributions has also been moved to July 15, 2020.
- Required minimum distributions (RMDs) from some retirement accounts for 2020 have been waived, including 401(k), 403(b), and governmental 457(b) plans as well as SEP IRAs, SIMPLE IRAs, and traditional IRAs.
- The 10% early withdrawal penalty will be waived on aggregate distributions of up to $100,000 from certain workplace retirement plans and individual retirement accounts (IRAs) for COVID-19-related purposes. The individual can elect to pay the federal income tax on the distribution over 3 years or has the option to repay the distribution within a 3-year period to an eligible retirement plan.
- Recent legislation included several provisions aimed at helping student loan borrowers and students who receive financial aid.
Congress has passed 3 bills aimed at mitigating the economic impact of COVID-19 and putting money into the economy. The most recent is the Coronavirus Aid, Relief, and Economic Security (CARES) Act. At about $2 trillion, it's the largest economic stimulus legislation in American history since the New Deal in the 1930s.
“The CARES Act is Washington’s massive stimulus effort to provide relief for families, individuals, small businesses, and major sectors of our economy impacted by the coronavirus outbreak,” says Jim Febeo, Fidelity’s Head of Federal Government Relations.
“For individuals it makes retirement funds available for emergency spending needs and delays mandatory distributions. It also enables broader use of health savings accounts, and provides help on student debt."
Earlier this month, the Families First Coronavirus Response Act expanded paid sick leave and family leave, strengthened unemployment insurance and food assistance, and enhanced protections for health care workers. It was signed into law by the President on March 18 and takes effect April 2. The funding available for this bill was $3.5 billion.