COVID-19 Update: What We Want You To Know About The 2nd Round Of Stimulus Checks

As we embark on this new year of 2021, below we have the updated items associated with this second round of stimulus checks. 

 

If you are unsure how you will receive your stimulus check, consider if you have set up direct deposit with the IRS for tax purposes, if you have-your stimulus amount will be automatically deposited into that account provided to the IRS for your tax refund.  If not-you will receive a check in the mail within the next few weeks.

 

What is new with this round of stimulus relief?

*New: if you don’t have a Social Security number, you will be able to receive a benefit this time

*New: $7 Billion to expand high-speed internet connections, inclusive of $50 a month for low-income family’s monthly internet costs

*New: $300 Million to build infrastructure in underserved rural areas and $1Billion in grants for tribal broadband programs

*New: $285 Billion set aside for a new round of small business paycheck protection program loans

*New: $70 Billion in health measures, including, $20 Billion for vaccine purchase, $8 Billion for distribution thereof, $20 Billion for contact tracing expenses

*New: Federal program for mortgage insurance emergency loans to nursing homes and elder care centers

*New: $10 Billion for the child-care industry, for enrollment, prevention from closures, staff payments, tuition payments for families

*New: $35 Billion to fund wind, solar, clean energy projects

*New: Makes it illegal for hospitals to charge patients for emergency out of network doctors, transport costs

*New: $13 Billion for nutrition assistance, $400 Million to support food banks and $175 Million for nutrition meal programs under the Older Americans Act.

 

What is extended or updated from the last round of stimulus payments?

*Individuals eligible for the above also would receive $600 per dependent child

*$600 per person for individuals up to $75k income/$1,200 per person for individuals up to $112,500 or couple up to $150k income

*Federal Jobless benefit of $300 per week, through March 14th 2021

*Federal Pandemic Unemployment Assistance provision is now extended to 50 weeks from 39 weeks

*Pandemic Emergency Unemployment Compensation increases from 13 weeks to 24 weeks

*Pandemic Unemployment Assistance program for freelancers and independent contractors of $100 per week

*$82 Billion goes to education-$54 billion for schools K-12 and $23 Billion for colleges/universities

*Extend the rent moratorium through January 31st, The HUD dept. protects homeowners until February 28th

*Food stamp benefits increased by 15% for six months, beginning on January 1st

 

Retirement Plan Stimulus (New!): You can now take a distribution from a qualified IRA account or retirement plan of up to $100k, without penalty.  Income taxes would apply over 3 years of this distributed amount.  This can be re-contributed back into the plan to avoid tax penalty.  You can also take a loan from one of these accounts up to $100k, for up to 180 days from December 27th.  The repayment period would be extended for one year.  Businesses are also now given more time to restore their workforce to pre-COVID levels to avoid retirement plan partial termination.  Employees can now also roll over any unused health and dependent care flexible spending from 2020 to 2021 and also 2021 to 2022.

 

I hope this update finds you safe and healthy.  Please feel free to share this page with family and friends.  These updates are part of our Questpoint process in ensuring what matters to you and what is relevant to you is provided to you.  Please feel free to contact us today to schedule a phone or video conference meeting to discuss any of these items further and how they affect your income distribution plan.  We will continue to bring you changes to this COVID-19 fiscal relief as they become available.

 

 

 

Craig J. Watkins is an investment advisor representative of, and advisory services are offered through, USA Financial Securities Corp. Member FIRA/SIPC.  A Registered Investment Advisor located at 6020 E. Fulton St., Ada, MI 49301.  Cornerstone Financial Group is not affiliated with USA Financial Securities, CA License #0591010