The latest legislation providing economic and other relief from COVID-19 has passed Congress and President Biden is expected to sign it into law. The American Rescue Plan Act (ARPA) includes $1.9 trillion towards funding for state and local governments, businesses, and individuals.
If you plan to retire or change jobs soon, it’s very important to have a plan for your balance in your current employer’s 401(k) plan. You could keep your savings where it is, roll them over into and IRA, or transfer the balance over to your new employer’s 401(k) plan. You do not need to rush your decision if you have more than $5,000 in your current employer’s plan, but it will be subject to the minimum distributions requirement after you reach age 72.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was an economic stimulus bill that was signed into law on March 27, 2020. One of the provisions of the CARES Act was the Employee Retention Credit, which provides payroll tax credits available for employers, including tax exempt organizations who retained employees during the COVID-19 pandemic. The goal is to help and provide financial assistance to employers during this time where business operations were disrupted and are not able to operate at full capacity.
After the new COVID-19 relief bill was signed into law on December 27, 2020, $284.5 billion became available to the second installment of the Paycheck Protection Program (PPP2) loans. $35 billion has been set aside specifically for those who are applying for a PPP loan for the first time, and another $15 billion has been reserved especially for community financial institutions (CFIs). First and second-time borrowers will be able to qualify for PPP2 funds.
California Passes Proposition 19
Proposition 19 was recently passed in California and will affect properties that you want to pass down to your children. It is important to know that Prop 19 will only affect the property taxes and reassessments of the property; it will not take away the step up in basis for inherited properties or impact capital gains taxes.
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