The COVID-19 pandemic has quickly made its impact throughout the nation, not only affecting people’s health but significantly changing our country’s way of life, business functions, and the global economy. It is our goal to continue to keep plan sponsors and participants informed amid this constantly changing environment.
Retirement Planning Outreach
We are excited to announce that we have made enhancements to our website! Plan sponsors and participants are encouraged to take a few minutes to view our updates at www.sfpwealth.com.
Attached for participant use is a market summary for the month of April. While most major equity indexes entered bear market territory in March, April brought a quick rebound and ended as the best month for the U.S. equities since 1987.
On April 9, 2020, the Internal Revenue Services (IRS) released Notice 2020-23, which extends deadlines for certain retirement plan actions that are otherwise due to be performed between April 1, 2020 and July 1, 3030 and sets the new due date for those actions as July 15, 2020.
Attached is a summary and FAQ relating to the student loan repayment provisions within the CARES Act. The key provision addressed in the Act is the temporary tax-free employer student loan repayment option. This article is for plan sponsor use only. The additional attachment is for plan participant distribution. It is an FAQ that details the revised financial relief options provided to federal student loan borrowers.
The environment we are in is constantly evolving and our goal is to continue to keep you all informed during these abnormal times. Attached you will find a detailed FAQ released by Equitable that drives deeper into the CARES Act provisions related to retirement plans as well as unemployment, small business assistance programs, etc. This is intended for plan sponsor use, not participant distribution.
We hope our weekly outreach continues to find you well! As we settle into this"new normal", SFP Wealth wants to ensure plan sponsors and plan participants stay informed. Market volatility can cause plan participants to feel unsettled, but it's important they revisit their financial plans and long-term goals before making an emotional decision.
You may have heard that the President signed the CARES (Coronavirus Aid, Relief, and Economic Security) Act last Friday -the third piece of major legislation related to stimulating the economy amid the Coronavirus outbreak. The $2 trillion act is intended to speed up economic relief across the American economy and keep businesses/individuals afloat during this unprecedented time.
As Plan Sponsors, you may be looking into plan provision changes; especially around employer contribution obligations. Plan sponsors do maintain flexibility around their employer contribution arrangement, including safe harbor contributions (restrictions apply), discretionary matching contributions, & profit-sharing contributions.
Due to COVID-19, many clients are hesitant to meet in person. SFP Wealth understands and appreciates your concerns, Therefore, our team is happy to work with you through various means of communication including conference calls, teleconferencing, email, etc. Our team is here as a resource to answer any questions you may have. SFP Wealth's commitment to our clients is unwavering. This has not and will not change.
With the continued calls for social distancing growing louder and louder by the hour, the twinges of worry and fear that we all feel are unavoidable. We are living through a social, political and financial maelstrom that the vast majority of us have never experienced. It is important to keep proper perspective on what our families, communities and our nation are experiencing right now. The SFP Wealth team hopes everyone is managing this difficult situation as best you can and that we all maintain a firm grasp on positivity and optimism in the coming weeks.
Section 2202 of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, provides for special distribution options and rollover rules for retirement plans and IRAs and expands permissible loans from certain retirement plans.
As of February 28, 2020, global stock markets have entered “correction” territory, defined as a 10% decline from the index high. This is in large part due to the uncertainty surrounding the new coronavirus, first detected in Wuhan City, China, but now detected in 37 locations internationally, including the United States.
This summary focuses on the provisions of the CARES Act that primarily affect individuals. It and the summary of provisions primarily affecting businesses are not intended to cover all provisions of the act or its potential impacts. It will be updated as additional information becomes available.
The longest bull market in history lasted almost 11 years before coronavirus fears and the realities of a seriously disrupted U.S. economy brought it to an end.
On Friday, March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. This $2 trillion emergency relief package is intended to assist individuals and businesses during the ongoing coronavirus pandemic and accompanying economic crisis. Major relief provisions are summarized here.
Plan Sponsor Resources
As the world grapples with the global outbreak of COVID-19, many employers have questions about their benefits compliance obligations pertaining to employees who may be affected by the virus.
As of March 2020, the COVID-19 pandemic has made its impact throughout the United States. Not only has it had a significant effect to the economy, it has changed nearly every Americans way of life. It has most definitely made its mark on your company, which may present serious financial difficulties for your employees.
On March 27, 2020, the Coronavirus, Aid, Relief, and Economic Security (CARES) Act (the “Act”) was signed into law. A portion of the Act is intended to loosen access to retirement plan funds and provide relief for individuals impacted by the COVID-19 pandemic.
The bill is a good start and, while not perfect, does address many needs of our students, educators, and schools. It is intended to help stabilize workers, families, and the economy during the COVID-19 public health crisis, and is the third relief package Congress has passed during the coronavirus pandemic. NEA is also advocating for additional stimulus funds in a fourth package.