In response to the halting U.S. economy, set off by the coronavirus pandemic, the federal government has passed a massive emergency funding bill to protect and support American businesses, hospitals and individuals. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) is a far-reaching bill with over 1,000 pages of text that detail the funding, loans, and tax provisions designed to provide economic relief.
The CARES Act also includes changes that will impact retirees’ retirement income strategies, including how they use their IRAs, 401(k)s, Social Security.
The five main areas of retirement planning impacted by the CARES Act are: required minimum distributions, 401(k) loans, Social Security benefits, the new coronavirus-related distribution exception, and charitable giving. Let’s dive into each of these areas.