Expert Contribution

Do I benefit from the new CARES Act?

On March 27th, President Trump signed the Coronavirus Aid, Relief and Economic Security (CARES) Act, the largest relief package in U.S. history. The Act extends aid to many struggling Americans by providing direct financial checks to many Americans, drastically expanding unemployment insurance, offering hundreds of billions in loans to both small and large businesses, and providing health care providers with much needed additional resources to combat the spread of the COVID-19 virus. 

The Act is very broad and comprehensive in scope, but some of the highlights include:

  • $1,200 checks to many Americans plus $500/child that will be phased out based on income of more than $75,000 
  • Waiver of 2020 required minimum distributions from qualified retirement plans and IRAs 
  • Delayed IRS 2019 filing dates and payment dates to July 15th, 2020 
  • Retirement plan and IRA penalty-free distributions—with repayment plans over several years 
  • Retirement plan loan expansion and relief 
  • Delayed deadlines for IRA and retirement plan contributions for 2019 
  • New charitable tax break of $300 above-the-line deduction and up to 100% of adjusted gross income (AGI) for qualified distributions 
  • Federal student aid and federal student loan payment extension through September 30, 2020 
  • Additional $600 a week in emergency unemployment relief and greater inclusion of workers not typically covered 
  • A massive emergency Small Business Administration nonrecourse loan program for small businesses, with generous forgiveness provisions 
  • Significant delay for employers to pay employment taxes 
  • Employment tax credits to finance sick leave for small businesses 
  • Extension of net operating loss carrybacks and carryforwards 
  • 461(l) excess loss limitation relief 
  • Deductible business interest expense relief

If you are interested in obtaining further details, we would be happy to provide you with additional information and resources. We can be reached directly at 925-279-1701 or email at carbonellforreywmg@rbc.com.

Investment and insurance products: • Not insured by the FDIC or any other federal government agency • Not a deposit of, or guaranteed by, the bank or an affiliate of the bank • May lose value

© 2020 RBC Wealth Management, a division of RBC Capital Markets, LLC, Member NYSE/FINRA/SIPC. All rights reserve

By James Carbonell, SVP Financial Advisor, RBC Wealth Management, Resident since 2004 and Matt Forrey, SVP Financial Advisor, RBC Wealth Management, Resident since 2009


About The Author

Wealth Management
The Carbonell Forrey Wealth Management Group
925-279-1701

Local Danville residents Jim and Matt have worked with families in the Bay Area for the past two decades. The Carbonell Forrey team offers customized investment planning and management services based on each individual’s unique set of needs and objectives. With a family-first approach, the team prides itself on delivering an exceptional experience so that clients are able to focus on the other important aspects of their lives.

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