There are many great quotes out there that are relevant right now, but it’s a lyric from Bob Dylan’s song, Brownsville Girl (a B-side track from the 80’s) that is in my mind: “Strange how people who suffer together have stronger connections than people who are most content.”
Yes, the times they are a-changin’ in many different ways, and it is easy to feel alone or isolated as we all do our part to slow the spread of COVID-19. But remember . . . our families, businesses, communities, states, and countries are all in this together. We have all been forced to look at things from a different angle. Ultimately, it is making us stronger and pushing us forward so that we can be more resilient in the future.
CARES Act Recap
Adapted from Broadridge Investor Communication Solutions
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020. This $2 trillion emergency relief package represents a bipartisan effort to assist both individuals and businesses in the ongoing coronavirus pandemic and accompanying economic crisis. The CARES Act provisions for retirement plan relief for individuals under federal tax law are discussed here.
For those seeking access to their retirement funds, these include special provisions for coronavirus-related distributions and loans. For those seeking to preserve their retirement funds, certain required minimum distributions from retirement funds have been suspended.
A 10% penalty tax generally applies to distributions from an employer retirement plan or individual retirement account (IRA) before age 59½ unless an exception applies. Due to the coronavirus pandemic, the penalty tax will not apply to up to $100,000 of coronavirus-related distributions to an individual during 2020. Additionally, income resulting from a coronavirus-related distribution is spread over a three-year period for tax purposes unless an individual elects otherwise. Coronavirus-related distributions can also be paid back to an eligible retirement plan within three years of the day after the distribution was received.
A Retirement Income Roadmap for Women
While everybody needs to plan for retirement, women often face special challenges when planning for this time of life.
For one, their careers are more likely to be interrupted to care for children or elderly parents. Even if women stay in the workforce fulltime, they tend to earn less than men, on average. As a result, their retirement plan balances are often lower.
In addition to earning less, women generally live longer than men. This means having to stretch potentially limited retirement savings and benefits over many years.
Don’t dismay. Here are a few tips to help yourself or the women in your life manage these challenging financial realities.
Participate In Retirement Planning.
You may be balancing so many responsibilities that you haven’t given retirement planning much thought. Or maybe you’d rather let your spouse take on these duties. That’s understandable, but it’s critical for women to take an active role in planning for retirement. Married or not, make sure you are well-informed and are able to make financial decisions that benefit you.