Planning opportunities under the CARES Act
- Planning opportunities under the CARES Act
- Table of Experts: Reading the tea leaves
- Checking in on Wisconsin banks
- Beyond Lip Service In DEI
- Johnson Financial Group to sell its insurance business to Boston firm
- Johnson Financial Group plans new branches, including in West Milwaukee
- New Johnson Financial Group Branch Planned In West Milwaukee and Delafield
- WisBusiness: the Podcast with Brian Andrew, Johnson Financial Group
- Johnson Wealth Fixed Income Tilts at Emerging Markets Debt, Mortgage Backed Securities
- Your Financial Foundation with Al Araque on the Lifeblood Podcast
- Where Some Investors See A Banking Disaster, Others See Opportunities
- Unexpected health insurance surprise possible when pandemic insurance programs expire
- Expert Advice on Finding the Best Car Insurance Company for Your Needs
- Bond Investors: Be a Prudent Pig, not a Yield Hog
- Women Insurance Pros on Balance, Community and the Future
- Financial Planning For Couples Who Totally Disagree
- Chief Investment Officer Brian Andrew Provides 2023 Outlook on the GoGedders Podcast
- How To Help Clients Who Own Businesses in Declining Industries
- Johnson Financial Group presents 'Lightfield' coming to Cathedral Square Park
- Johnson Financial Group Named Top LGBTQ Workplace
- Financial advice is the midlife job that women want – but don’t know exists
- Expert Insight for Beginner Rental Property Investors
- Meet the RIA: Johnson Financial Group
- Meet the RIA: Johnson Financial Group
- Coolest thing made in Wisconsin announced by WMC and Johnson Financial Group
- Corporate Charitable Contributors in Wisconsin
- Still The Fed!? | Economic Outlook
- 'Coolest Thing Made in Wis.' voting begins
- Johnson Financial Group and Habitat for Humanity Kenosha work together to help homeowners
- Inflation 101: How the Market Is Changing Around Us
- We have a responsibility to be solution providers for our customers
- Being a leader is a team sport
- Jason Herried Joins Chuck Jaffe on Money Life
- Have questions about "Gray Divorce"? Attorney Kelly Mould, CRP® can help.
- Jazz in the Park Is Back Thursday Nights Starting July 21
- People in Business - Al Araque
- 2022 Housing Market Overview: Everything You Need to Know
- "Give Back More Than You Take" - Helen Johnson-Leipold
- A Brief History of Economic Crises, Crashes and Recoveries
- Kelly Mould and Kate Trudell Earn State Bar Award for Outstanding Service
- JFG Supports Affordable Housing through FHLBank Chicago
- Helen Johnson-Leipold shares business tips for success at Marquette speaker series
- Notable Commercial Banking Leaders: Thomas Moore
- Notable Commercial Banking Leaders: Viktor Gottlieb
- Johnson Financial Group partners with Racine Habitat for Humanity to service mortgages at no cost
- Upcoming Lineup Of Broadway Shows Announced At Marcus Performing Arts Center
- See the Milwaukee Business Journal's 2022 Real Estate Award winners
- Joe Maier “Employers are going to have to rethink their practices”
- Emotional Investments: Why They Happen and How to Avoid Them
- Investors are a growing force in the residential real estate market, but how should sellers evaluate these offers?
- Inflation advice for younger colleagues
- Amber Krogman: 40 Under 40
- The Last Word: Planning to make a lasting impact
- Rising Stars in Wealth Management: Robert Schneider
- Should You Sell Your House to an Investment Company?
- Evoking change within the Milwaukee community with Johnson Financial Group's Jim Popp
- Brian Andrew Provides 2022 Outlook on TD Ameritrade's Market on Close Show
- A Shift in the Tech Landscape
- Evoking change within the Milwaukee community with Jim Popp, CEO of Johnson Financial Group
- The Rising Trend Of "Gray Divorce" with Kelly Mould of Johnson Financial Group
- How the Fed's Rate Hikes Will Affect Your Finances
- Evoking change within the Milwaukee community with Jim Popp, CEO of Johnson Financial Group
- Johnson Financial Group Recognized on Financial Planning's 2021 RIA Leaders List
- Financial Education For Teens
- Find out why these business leaders are 2021 Milwaukee-area power brokers
- Thoughts for business executives on future-proofing a business
- Jim Popp Joins Fox 6 to Announce the Milwaukee Holiday Light Festival
- Milwaukee’s Holiday Lights Festival Kicks Off This Week!
- 2022 Market Outlook with Brian Andrew of Johnson Financial Group
- Notable Women in Insurance: Joanne Szymaszek
- Brian Andrew Joins Gene Mueller on WTMJ Radio
- #FreeBritney: When Protections Turn Toxic
- WisBusiness: the Podcast with Jim Popp, president and CEO of Johnson Financial Group
- M&A Environment Heating Up, Says Johnson Wealth
- WE Energies Customer Spotlight On Energy Efficiency
- Your home renovation may require an insurance update. Here’s why.
- Johnson Financial Group donates $500,000 to United Way organizations across Wisconsin
- Madison’s Moving Business Forward Podcast
- Thoughts for business executives on return-to-office technology
- First look: Johnson Financial Group's new Downtown offices and branch
- Johnson Financial Group Shows Off High-Rise Office
- Six Tips for Developing a Business Plan for Uncertain Financial Times
- The sky’s the limit for an advisor dedicated to working with airline pilots
- Is Bitcoin Here to Stay? An Assessment of Opportunities and Risk
- You may have a ‘huge edge over high-powered investors,’ says investing risk expert: Here’s why
- Executive Insights with Jim Popp
- CEO Jim Popp Honored as Distinguished Executive
- 2021 Guide to Wealth Management: A War on Wealth?
- Notable Alumni: Scott Cooney
- Jason Herried Joins Chuck Jaffe on Money Life Market Call
- Top Workplaces 2021: Q&A with three CEOs who were recognized for their leadership during a challenging year
- How will Biden's new tax plan affect you?
- American Jobs Plan: Potential Implications for You and Your Business
- Get on the Right Track to Financial Freedom
- Greater Madison area Top Workplaces 2021
- The Crazy Housing Market: Buy, Sell or stay on the sidelines?
- UPAF Ride for the Arts series will take place over three June weekends
- Navigating the Financial Market in 2021 with Brian Andrew of Johnson Financial Group
- Financial services industry helped guide businesses through sharp downturn: Banks hustled to meet massive PPP demand
- Financial services industry helped guide businesses through sharp downturn: Banks hustled to meet massive PPP demand
- Johnson Financial Group matches food donations to help feed Wisconsin families
- Johnson Financial Group: To donate $300,000 to help feed Wisconsin families
- Women in Leadership: Sharing & Celebrating Women's Stories
- 2020 Milwaukee-area power brokers
- Dow Surges to Highest Level Since February on Vaccine Results, Biden Win
- Johnson Financial Group Named One of Wisconsin's Largest Corporate Charitable Contributors
- Brian Andrew joins TD Ameritrade Network's Market on Close Show
- Don't forget about the "I" in D&I
- Johnson Financial Group to move Milwaukee offices to Cathedral Place
- Pandemic Uncertainty Leaves Wisconsin Bankers Ready To Reserve
- What's going on in the financial markets right now with Jim Popp of Johnson Financial Group
- Downside risk is now a pit, not a chasm. Still, underweight stocks & overweight (some) bonds.
- Brian Andrew joins TD Ameritrade Network's Market on Close Show
- Why You Want To Keep Your Politics Separate From Your Investing
- Johnson Financial Group growing, still hiring on its 50th anniversary year
- The COVID Calculation
- Pleasant Prairie company gets boost from Paycheck Protection Program
- Banks locally, statewide step up to help businesses obtain $8.3 billion in PPP
- Johnson Financial Group donates $200K to support United Way, other nonprofits during COVID-19 pandemic
- Second round of PPP starts slowly as Milwaukee-area businesses still await loans
- Brian Andrew joins Chuck Jaffe on Money Life
- Wisconsin lenders ready to shell out hundreds of millions in Paycheck Protection Program loans
- Brian Andrew joins TD Ameritrade Network's Market on Close Show
- Brian Andrew joins WTMJ to discuss coronavirus and its impact on the economy
- Brian Andrew Joins Gene Mueller on WTMJ Radio
- BizTimes Media Announces Milwaukee’s Notable Women in Commercial Banking
- Johnson Financial Group adviser honored
- Tech-driven R&D goes beyond the budget. Some Milwaukee execs speak up
- What would cause markets to react after Fed meeting
- Banking official remains confident in local economy's growth
- Brian Andrew joins Chuck Jaffe on Money Life
- Rock County home prices continue to climb
- The coolest thing made in Wisconsin
- Dan Defnet named president of Johnson Bank
- Future Returns: Ignore Politics When Investing
- Local banker to get Forward Janesville's Lifetime Achievement Award
- Wisconsin Could See Economic Slowdown This Year, Not Recession
- When Corporate Bonds Are a Risky Investment
- Johnson Financial Group becomes Broadway at the Marcus Center title sponsor
- Getting Ready to Exit: What Baby Boomers know and should know about getting their business ready for sale
- Take Five: Putting some Popp in banking
- Jim Popp in the News
- Jason Herried's Take on the 'Booms and Busts' of the Economy
- Johnson Insurance creates new 'workplace of choice'
- Paul Ryan lauds Harvard award-winner Helen Johnson-Leipold
- Business Leader of the Year Helen Johnson-Leipold leads big parts of the Johnson family business
- Johnson Financial Investment Expert: More growth, low inflation ahead
- Foxconn's Balance Sheet Tipped in Mt. Pleasant's Favor
- JFG honored by Department of Defense
- The Open Road comes to the Milwaukee Art Museum
- 3 business lessons from the new Johnson Financial Group CEO
- Executive Q&A: Jim Popp takes the helm at Johnson Financial Group
- Banking exec Jim Popp named president of Johnson Bank
- Banker: Focus on millennials, not president
- American Birkebeiner Legacy Lives on with Support from Johnson Bank and Johnson Family Foundation
- Johnson Financial's CIO always focused on learning: Brian Andrew
- TEMPO MILWAUKEE 2020
On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (“CARES” Act). The CARES Act provides approximately $2.2 trillion of economic relief and stimulus designed to help the United States economy and its citizens endure the shutdowns and hardships caused by the coronavirus. While the CARES Act has several different provisions and areas of focus, the purpose of this blog is to focus on some key planning opportunities created by this Act.
Elimination of any 2020 required minimum distribution
The CARES Act suspends any required minimum distributions (RMDs) that were scheduled for 2020. For account owners, this includes not only 2020 RMDs, but also 2019 RMDs (due to the account owner turning 70 ½ during that year) that were otherwise required to be taken prior to April 1, 2020. Further, it also includes beneficiaries under inherited IRAs. The planning advantages to this provision are (1) extending tax deferred growth and (2) eliminating the requirement to liquidate assets in a volatile market with depressed stock prices.
Coronavirus-related distributions (CRDs)
While the elimination of RMDs is designed to empower people to protect their long term plans, CRDs are designed to protect the short term economic viability of those impacted by the virus. Impact is broadly defined to include both actual infection and economic impact. For those so impacted, in 2020, they can take a penalty free withdrawal of up to $100,000 from their employer plan or IRA (or a combination of both). These distributions are eligible to be taxed equally over a three year period (2020, 2021, and 2022). Finally, the recipient can, at any time within three years of receiving the distribution, pay it back to the plan and file a refund claim for any taxes paid.
Enhancements to loans from employer sponsored plans
In 2020, the maximum amount that may be borrowed from an employer sponsored plan is increased from $50,000 to $100,000 and the percentage of the vested balance is increased from 50 percent to 100 percent. Further, any plan loan payments that would be due in 2020 are deferred for up to one year.
2020 is not counted in the five-year rule
For IRA beneficiaries who are required to take full distribution of the IRA balance by the end of the fifth year following the account owner’s death (charities and certain trusts, for example), 2020 will not be counted as one of the five years. So, for “non designated beneficiaries” who inherited an IRA from an account owner who died in 2015–2019, the five-year rule in essence becomes a six-year rule.
$300 above the line charitable deductions
Since the 2017 Tax Act dramatically increased the standard deduction, materially fewer taxpayers have received any income tax benefit from their charitable contributions. Starting in 2020, for those taxpayers who utilize the standard deduction, they will have the additional benefit of being able to deduct up to $300 of charitable contributions as well. These contributions need to be cash contributions directly to qualifying charities, not contributions to donor advised funds or foundations.
Repeal of the AGI limit for charitable cash contribution
Under current law, cash contributions to charities can be deducted up to 60 percent of AGI. In 2020, that 60 percent cap is repealed. So, in 2020, taxpayers can completely wipe out their tax liability through equivalent charitable cash contributions. And, if taxpayers contribute more than their 2020 AGI, they can carry forward the contribution for five years.
Conclusion
In these uncertain times, it is critical to take advantage of all available tools to protect your needs, wants, and wishes. The CARES Act provides several planning tools that, if implemented correctly, allow plans to work more effectively. Please contact your adviser for a discussion on incorporating these ideas into your plan.
Joe Maier is director of wealth strategy for Johnson Financial Group.