Relief for Individuals And Families3077e30b3505103cccca-887c59b3fa3efa643d8440f6dbf84b97.r71.c… · Recovery Rebates •One-time payment of $1,200 for individuals ($2,400 couple)

Relief for IndividualsAnd Families

Donald LippencottFounder & CEO

Lippencott Financial Group

Armstrong RobinsonVP of Legislative Affairs

AALU/GAMA

Suzy JacobsSVP of Business Development

AALU/GAMA

Featuring

Joseph M. CopeCo-Founder & Managing Partner

Cope Corrales

C19 – Relief for Individuals

• Paid Sick Leave: 80 hours of paid sick leave, up to 12 weeks of expanded FMLA leave • Recovery Rebates: $1,200 ($2,400/couple) for AGI under $99,000• Unemployment Insurance: $600/week for up to 39 weeks; applies to independent

contractors/sole proprietors/gig workers • Retirement Plans: Waives 10% withdrawal penalty for plan loans, 3-year payback period• Student Loan and Mortgage Relief: Extended repayment deadlines• Charitable Giving: Incentives for cash gifts related to COVID-19

Sick Leave Requirement

• Beginning 4/2/2020

• 80 hrs (two weeks) of sick leave for full-time employees available for immediate use because he/she:

• Is sick or quarantined (paid at 100% of employer rate and capped at $511/day and $5,110/total)

• Caring for someone who is sick or quarantined and caring for a child or lost childcare (paid at 66.7% of employee rate and capped at $200/day and $2,000/total)

• Up to 12 weeks of expanded FMLA leave, unpaid during the first 10 days, and then paid at 66.7% of the employee rate (capped at $200/day and $10,000/total) and available to anyone after 30 days of employment

Recovery Rebates

• One-time payment of $1,200 for individuals ($2,400 couple) and $500 for each dependent child under 17.

• Phase-Out: The phase-out for Individuals begins at adjusted gross income (AGI) of $75,000 ($150,000/couple) and is completely phased out beyond AGI of $99,000 ($198,000/couple)

• Taxpayers that have filed a federal tax return in 2018 or 2019 are eligible to receive the benefit, in addition to Social Security beneficiaries and those receiving welfare benefits.

• The rebates are not taxable, and will not impact eligibility of other federal programs.

Note: Direct deposits are expected as soon as mid-April, checks will take longer. Treasury plans to develop a direct deposit option for those currently without one in the coming weeks.

Unemployment Insurance

• $600/week for up to 4 months to those unable to work for coronavirus-related reasons, including the self-employed/gig-workers/independent contractors.

• The $600 payments will be added on top of any state unemployment assistance.• If an individual exhausts state unemployment benefits and remains unemployed, they are

eligible for an additional 13 weeks of assistance. • To determine eligibility, individuals should contact the unemployment office in the state

where they worked:https://www.careeronestop.org/LocalHelp/UnemploymentBenefits/unemployment-benefits.aspx.

Retirement Security Provisions

• Waives 10% early withdrawal penalty for distributions from qualified plans and IRAs up to $100,000 for coronavirus-related purposes until December 31, 2020.

• Plan sponsors can temporarily increase plan loan limits and delay loan repayments.

• RMD requirements waived for qualified plans and IRAs (including 403(a), 403(b), and 457(b)) for 2020.

• Distributions are subject to tax over three years, and funds can be recontributed within three years without regard to that year’s cap on contributions.

• Plan administrators can rely on an employee’s certification that they meet the eligibility requirements for a coronavirus-related distribution.

• The increased loan limits are optional, but most plan sponsors are expected to adopt this provision.

Student Loans

• The bill defers all federal student loan payments, principal, and interest through September 30, 2020.

• Student Loan Repayment Benefit Programs: An employer may contribute up to $5,250 per employee each year to employer-created student loan repayment benefit program; payments are excluded from the employee’s income.

• Employees cannot deducting any employer-paid student loan interest expense excluded under this provision.

Charitable Contributions

• Deductions of up to $300 for cash contributions to churches and charitable organizations in 2020, whether the taxpayer itemizes their deductions or takes the standard deduction.

• 50% adjusted gross income limitation for individuals is suspended for 2020.

• The deduction does not apply to cash contributions to supporting organizations of churches and charities, or to donor advised funds.

• Cash contributions remain limited to the excess of adjusted gross income over the amount of all other charitable contributions, with any excess cash contributions carried forward to subsequent tax years.

Mortgage Relief

• 60 days of forbearance on mortgage payments for borrowers that demonstrate coronavirus-related financial stress.

• Landlords can extend repayment deadlines for commercial loans for up to 90 days in lieu of evicting tenants due to nonpayment. The White House is considering taking additional steps to help renters.

By Advisors, For Advisors: Learning from the Best

Q&A with Don and Joe

Donald LippencottFounder & CEO

Lippencott Financial Group

Joseph M. CopeCo-Founder & Managing Partner

Cope Corrales

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