Stimulus/Corona Virus Act - help for small business

[Julie Jordan]

Thought I'd throw this out there, I know a lot of us have small businesses who have been affected by the shutdowns this virus has caused.

There are some provisions in the new law that will help small businesses survive. The first is fully-guaranteed loans from the SBA, no collateral or down payments required, that can be used to pay rent/mortgage, utilities, payroll, etc. Under certain scenarios it is possible that you would not have to repay and claim as income. Here is the link to the SBA site: https://www.sba.gov/page/coronavirus...loan-resources

Also, you can make withdrawals from your IRA and pay no tax if paid back within 3 years. If not paid back, the tax is payable over 3 years. The under-59 1/2 early withdrawal penalty has been waived.

You do not have to take a 2020 Required Minimum Distribution from your IRA, if you want. Our IRA's have taken a hit lately, this allows you to leave the funds in and (hopefully) watch the account recover.

[jmcarter]

Great tips Julie. I’d urge those thinking about pursuing this with he Small Business Association to not hesitate to file. Once the money is gone, it’s gone.

[Terry Cain]

Anyway to get around the IRMMA penalty?

[GUMP]

Thanks!

[House of Darts]

There is a real **** storm, once you go from the bill to actual forms and info needed. This is where government is at its weakest. Website can't mantain the influx. People sign up without the info needed and their application sits and blocks up everything. If you have a good relationship with a local bank, this is where you want to go. Its like dealing with the IRS or police force without an attorney strapped to your side. There's many financial forms/info required to complete. Do it right the first time or its a quagmire, gigitty!

[Julie Jordan]

Originally Posted by Terry Cain

Anyway to get around the IRMMA penalty?

Haven’t found anything that will help there. Maybe it will be in a later technical correction?

[Rich Biebel]

“You do not have to take a 2020 Required Minimum Distribution from your IRA, if you want. Our IRA's have taken a hit lately, this allows you to leave the funds in and (hopefully) watch the account recover.”

Thankyou for that info Julie.
For me that is helpful.
The IRS also lifted the age limit on IRA contributions starting 2020 I believe and those two things really helps if you’re working and well past the usual retirement age as I am.

You save it but end up giving some of it back in taxes.

[Julie Jordan]

Originally Posted by Rich Biebel

“You do not have to take a 2020 Required Minimum Distribution from your IRA, if you want. Our IRA's have taken a hit lately, this allows you to leave the funds in and (hopefully) watch the account recover.”

Thankyou for that info Julie.
For me that is helpful.
The IRS also lifted the age limit on IRA contributions starting 2020 I believe and those two things really helps if you’re working and well past the usual retirement age as I am.

You save it but end up giving some of it back in taxes.

Yes, the date is now 72. If you were already stuck with the 70 1/2 rule, then you have to stay with that.