Required Minimum Distributions

Resuming RMDs, Required Minimum Distributions from Retirement Savings Plans

Fulcrum Partners Fulcrum Partners News

RMDs, which are required minimum distributions, mandated by the IRS to be taken from traditional IRAs, rollover IRAs, SIMPLE IRAs, SEP IRAs, most Keoghs, and most 401(k) and 403(b) plans, were waived in 2020. But as life returns to the “new normal,” RMDs are back. While the March 2020 passage of the CARES Act (Coronavirus Aid Relief and Economic Security) temporarily waived the required minimum distributions for all types of retirement accounts, included inherited IRA plans, the waiver expired in December of 2020.

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Deadline for RMD Rollback Under CARES Act is August 31

Fulcrum Partners. Deferred Compensation News

Taxpayers who have already taken their required minimum distribution, RMD, for 2020, have the option for an RMD Rollback under the CARES Act if taken by August 31, 2020. The intention of this option is to provide tax relief for those who took their required RMD prior to the Coronavirus Aid, Relief, and Economic Security (CARES) Act becoming law on March 27, 2020 and wish to ‘undo’ their action.

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The DOJ is Serious About Prosecuting PPP Loan Fraud

Fulcrum Partners. Fulcrum Partners News

A provision of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, the Paycheck Protection Program, PPP, has been a difference-maker for many U.S. companies. As of June 30, 2020, nearly 5 million small and medium-sized businesses received a much-needed cash infusion to help them make payroll during the height of the COVID-19 pandemic. But where there is loan money available on payback forgiveness terms, there will inevitably be fraudsters attempting to game the system. 

the publication explains the new provisions which allow enhanced access to plan loans and plan distributions. 

CARES Act Guidance for Plan Sponsors and Participants Updated

Fulcrum Partners. Deferred Compensation News

On June 19, 2020, the Internal Revenue Service (IRS) updated and clarified issues of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) guidance for plan sponsors and plan participants. Issued as Notice 2020-50 (“Guidance for Coronavirus-Related Distributions and Loans from Retirement Plans Under the CARES Act,”) the publication explains the new provisions which allow enhanced access to plan loans and plan distributions. 

PPP Forgiveness Calculation Guide

PPP Loan Forgiveness Calculation

Fulcrum Partners. Human Resources

If your business obtained a PPP loan, whether you plan to repay the loan or to seek PPP loan forgiveness, you need to be fully aware of the revised terms and conditions established under the Paycheck Protection Program (PPP) Flexibility Act of 2020 (PPPFA). The PPP Flexibility Act (HR 7010) was signed into effect by President Donald Trump on June 5, 2020. This action changes and replaces the terms of PPP Act loans and adds flexibility that will be valued by many borrowers.

Executive Comp Limits When Companies Receive Stimulus Aid

Executive Comp Limits When Companies Receive Stimulus Aid

Fulcrum Partners Human Resources

Previously, we’ve shared updates to help companies and their key executives with regard to executive comp limits for organizations that receive certain types of COVID-19 loans, loan forgiveness, or stimulus aid. See: CESA Act Loans: Further Information* and Insights and Executive Compensation Restrictions and the CARES Act

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The Much-Anticipated PPP Loan Extension

Fulcrum Partners. Fulcrum Partners News

The Paycheck Protection Program Flexibility Act of 2020 (PPPFA) (i.e., the PPP loan extension) has been signed into law. After receiving U.S. Senate approval on June 3, 2020, the amendment to the Small Business Act and the CARES Act was finalized on June 5, with the signature of President Donald Trump. Updating the Paycheck Protection Program of the Small Business Administration, the PPPFA adds much needed flexibility to the timing and forgiveness options than was allowed by the original PPP Act.