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The CARES Act and Retirement Plan Distributions
The CARES Act implements new types of “coronavirus-related distributions” from retirement plans, including 401(k), 403(b), 457(b), and employee stock ownership plans, as well as individual retirement accounts (IRAs). These distributions are not subject to the 10% early withdrawal penalty that would otherwise apply to early distributions from these types of plans, nor are they subject to withholding…
Read MoreUnderstanding Payroll Protection Program Loan Forgiveness
Preparing for PPP Loan Forgiveness Businesses that have secured a loan through the PPP should already begin preparing and arranging for the information that they will eventually need to apply for forgiveness of that loan following the end of the eight-week, post-loan closing period. A formal application is yet to be released by the Small Business Administration…
Read MoreProvide Direct Deposit to IRS to Receive Stimulus Payment
On or around April 17th, the IRS will be providing a link on their website for individuals to provide their bank account information if they haven’t previously received direct deposit. This will allow you to receive your stimulus money by direct deposit rather than by check. Visit the IRS Website.
Read MoreNew Jersey COVID-19 Grant and Loan Programs
In response to the COVID-19 pandemic, the New Jersey Economic Development Authority (NJEDA) is offering both a grant and a loan program for small businesses. Here is a summary of these programs as of April 3, 2020. Small Business Emergency Assistance Grant Program This program provides a maximum individual grant of up to $5,000 to businesses in specific industries under…
Read MorePaycheck Protection Program (PPP) Update
On Thursday, April 2nd, the SBA released thirty-one pages of an interim final rule concerning the PPP. Many of the provisions address lender-related details, and several additional regulations are still forthcoming. The following is a summary of the document. 1 – Independent contractors do not count as employees for purposes of a borrower’s PPP loan calculations. This is somewhat of…
Read MoreSBA Guidance on Paycheck Protection Program (PPP)
The SBA recently released some early guidance regarding the paycheck protection program (PPP), which is open through June 30, 2020. This guidance confirms that: Loan terms will be the same for all borrowers Loans will carry a 0.50% fixed rate No collateral is required No personal guarantee is required Loans have a two-year term and no pre-payment…
Read MoreNew Jersey Tax Deadline Extended
Today we learned that the New Jersey state income tax filing deadline and the corporation business tax filing deadline has been extended from April 15th to July 15th. As always, speak to your MSPC partner about how the changes relate to your specific situation.
Read MoreUpdate Tax Filing Date: IRS Extends Deadline to July 15th
As a follow-up to our previous post, the IRS income tax filing and the deadline for making payments has been extended to July 15th. Taxpayers can delay paying their income taxes on as much as $1 million in taxes owed for up to 90 days. Corporations that owe up to $10 million will also be…
Read MoreIRS Extends Tax Payments Deadline – What This Means for You
As everyone is aware, COVID-19 is impacting businesses around the globe. This week, US Treasury Secretary Steven Mnuchin announced that taxpayers can delay paying their income taxes on as much as $1 million in taxes owed for up to 90 days. Corporations that owe up to $10 million will also be able to delay their…
Read More401(k) Hardship Distributions
Nearly 100 million people are participants in a 401(k) plan in the U.S. according to the U.S. Department of Labor. Unfortunately, many of those participants are unable to leave 100% of their accounts available to use in retirement. This is because they face a financial hardship and need to take a loan or a distribution…
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