Updates Regarding COVID-19 Relief

Senate Votes to Extend Paycheck Protection Program Application Period

As cases of COVID-19 increase across the country, the Senate unanimously passed a 5‑week extension on the deadline for small businesses to apply for the Paycheck Protection Program (PPP). There is still approximately $129B of unclaimed PPP funds, and the U.S. Small Business Administration (SBA) stopped accepting applications at midnight on June 30^th. This extension would enable more small businesses that have not applied for a loan to still receive one. The new application deadline would be extend the application period to August 8^th. The House would need to pass the bill, and then the President would need to sign the legislation.

Required Minimum Distributions (RMDs) Guidance Issued

The Coronavirus Aid, Relief, and Economic Security (CARES) Act included a provision that allowed retirees to opt out of taking their 2020 required minimum distributions (RMDs). But since the CARES Act was not signed into law until March 27^th, many retirees had already taken their 2020 RMDs. Under the CARES Act, some were able to roll those distributions back within 60 days, but those who took distributions in January 2020 were beyond the 60 days rollover period and, therefore, precluded form rolling over their previously taken RMD. The IRS recently issued Notice 2020-51, Guidance on Waiver of 2020 Required Minimum Distributions, that extends that 60‑day roll over period through August 31, 2020 for all 2020 RMDs. Thus, allowing those that took distributions in January to effect a valid roll over. This ruling applies to defined contribution retirement plans, including 401(k) or 403(b), or an IRA; defined benefit plans are excluded.

If you need assistance or have any questions about the PPP loan application extension or the required minimum distributions guidance, please call your CironeFriedberg professional. You can reach us by phone at (203) 798-2721 (Bethel), (203) 366-5876 (Shelton), or (203) 359-1100 (Stamford), or email us at info@cironefriedberg.com.