Employee benefits

The passage extends the IRA contribution deadline and waives RMDs for 2020. Here’s what else financial advisors need to know.

In some cases, workers who have received severance pay have the option of investing the money for retirement and other long-term goals.

Older clients are advised to take extra steps to protect their finances as the current crisis may leave them prone to making poor financial decisions.

The Secure Act eliminated a popular retirement planning feature. Here are strategies to help clients mitigate the tax hit.

“[By extending the tax deadline], they automatically extended the deadline to make an IRA contribution last year,” an expert says.

If they plan to use them for current spending, “then the timing of the distribution would not matter for tax purposes,” an expert writes.

Clients are advised to minimize spending and tap possible sources of cash and credit, including their tax refund.

Market plunges are normal and stocks are likely to recover and earn a positive return over the long term, says an expert.

“I don’t think the volatility will be over until we’re finished with this virus,” one RIA says.

“Having retirement assets in both traditional and Roth accounts can help clients hedge their tax bets for retirement,” an expert says.