We all have many extra stresses in our life now, both business and personal. Your Grimes Financial team just wanted to offer a few ideas. Feel free to call us at 336-249-2723 if we can help you with any of these. Of course, some are more tax oriented and need to be discussed with your tax professional, but we will still do everything we can to support you. Grimes Financial is open and doing business but like every business with a few adjustments.
The CARES Act (883-page, Coronavirus Aid, Relief, and Economic Security Act) and the Families First Coronavirus Response Act have many options and we are all working to understand the details, even the various government agencies involved. Here are a few of the major sections you may want to consider. Many of these will take months to fully understand and implement. These are just the highlights of the highlights. We will be untangling these (and future) stimulus packages for several years.
- Cash payments paid directly to individuals and households.
- Enhanced Unemployment benefits.
- RMD Holiday – If you are taking Required Minimum Distributions due to being age 70.5 or 72 and higher AND don’t need the income this can be huge. Be sure and discuss these options with us as they require careful planning.
- Debt Relief Options – This really is not our area and few of our clients will need this help but it is there and will benefit many people hardest hit financially.
- Penalty free withdrawals from retirement accounts and IRAs. – Limited to $100,000. Again, many details. Please call us to discuss.
- Employer sponsored Retirement Accounts – relaxed loan options. Talk to your employer.
- Low interest Business Loans and potential loan forgiveness – Apply for these through your own bank, usually online. We believe every eligible business should apply but again many details. Feel free to call us to discuss. We have certainly applied. Again, your tax professional and payroll provider can help with details.
- Payroll tax relief – This can be a refundable tax credit or the ability to defer the 6.2% employers pay on behalf of their employees for Social security. You will need to discuss with your tax professional.
- Self-employed Sick and Family Leave Credits – Again, details will be important, but this can help many self-employed. I have not found many details of this one yet. Future conversations will be forthcoming.
- Employee Retention Credit – a refundable payroll tax credit but appears to be unavailable if you take the small business loan.
- Direct assistance to distressed industries. Airlines being the most obvious on this list.