Should I withdraw funds from my 401k to help with expenses due to COVID 19?

As part of the CARES Act, Congress expanded distribution rules and added favorable tax treatment for 401k’s and IRAs.  In order to qualify under the CARES Act provision, you, your spouse, or a dependent must have received a positive COVID diagnosis or you have suffered a financial blow from the quarantine.  This means you have been furloughed, laid off, had … [Read more...]

Market Rallies Ignoring Bad News

In the last days of May there appeared to be a disconnect between economic reality and the stock market.  The market moved higher amid alarming economic numbers.  Over 38.6 million Americans are unemployed.  According to the International Monetary Fund, the US GDP declined over -5% in the first quarter of 2020.  Consumer spending declined over -13% in … [Read more...]

Is this a Bear Market Rally or the Beginning of a new Bull Market?

In April the market appeared to focus on any good news and ignore the bad. Clearly the actions of the Federal Reserve and the central bank to flood the economy with money gave investors confidence. April was one of the best months in the stock market in decades. Historically “best months” do come during bear markets. By April 9th the Dow Jones Index had … [Read more...]

Important Information Regarding Certain Virginia Tax Payment Deadlines

In Tax Bulletin 20-5 on April 27, 2020, the Virginia Department of Taxation announced an automatic waiver of Interest for Certain Income Tax Payments due between April 1, 2020 and June 1, 2020. If full payment of tax due is made on or before June 1, 2020 there is no accrual of interest. This waiver of interest applies to payments for Taxable Year 2019 … [Read more...]

Where Will the Market Go From Here?

Stock market declines are scary and as the losses increase the more frightening it can be. It’s easy to hyper focus on the daily volatility and without a plan that can lead to emotional decisions. Emotions tend to lead investors to sell near market bottoms. In the 5 ½ weeks from February 12th to March 23rd the Dow Jones Index declined almost 11,000 points. … [Read more...]

Check the Status of Your Economic Impact Payment

Economic Impact Payments are being released this week to taxpayers. Some taxpayers report already receiving a deposit in their checking accounts. To see if you are eligible and to check the status of your payment go to this web portal: https://www.irs.gov/coronavirus/economic-impact-payments See the tab that says “Get My Payment” on this web portal. … [Read more...]

What is the Paycheck Protection Program and who can apply?

The CARES Act contains programs to help small businesses survive this crisis and keep their workers employed. The Paycheck Protection Program provides up to $349 Billion from the US Treasury for loans to small businesses facilitated through the Small Business Administration (SBA) and approved banks. The purpose of these loans is to provide liquidity to … [Read more...]

Fed Announces New Stimulus

As another 6.6 million Americans filed for unemployment insurance, the Federal Reserve announced an additional $2.3 Trillion of liquidity for consumers, businesses, and state and local governments this morning, April 9th. The stock market rose at the open signaling that the unemployment numbers are already baked in and investors are focused on the financial … [Read more...]

Avoid Scams related to Economic Payments!

The IRS is warning taxpayers to be vigilant about scam artists who may contact you about the government checks soon to be distributed. 1. The IRS will not call you on the phone. 2. The IRS will not send you a text message. 3. The IRS will not send you an email. 4. The IRS will not contact you on social media. Do not respond to a contact on any of … [Read more...]