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Update from The Planning Group of the Northwest (4/17/2020) Thumbnail

Update from The Planning Group of the Northwest (4/17/2020)

As we near the middle of April we wanted to say hello and provide you with some timely information. Our team hopes that you and your family are well and healthy. We are all healthy and our team continues to be fully functional. 

Here are some highlights from this week that we thought might be of interest:

  •  The discussion shifted this week to how and when the economy will reopen
    • The White House revealed their guidelines for reopening America
    • https://www.whitehouse.gov/openingamerica/
    • Several groups of State Governors formed working groups to focus on opening economies in various areas of the country:
    • Midwest: Michigan, Ohio, Wisconsin, Minnesota, Illinois and Kentucky
    • Western: California, Washington and Oregon
    • Eastern: New York, New Jersey, Connecticut, Pennsylvania, Rhode Island and Delaware
  •  Markets continue to react to positive news (the S&P 500 is up over 2% for the week)
  • Planning Idea for the Week
    • Roth Conversions: With the ever changing climate in the market today as well as recently passed legislation, Roth conversions are, rightfully so, a hot topic. Many are experiencing a significant drop in value of the positions that they own. Based on tax law today, converting from a Traditional IRA to a Roth IRA, in kind, can allow for future recovery of the asset to be sheltered from future income tax. When a Traditional IRA is converted to a Roth IRA, income tax is assessed on the value of the asset on the date of the transfer, which, in today’s market, can potentially result in a lower taxable transaction. Given the market volatility, those interested in IRA conversions should consider dollar-cost-averaging and potentially integrate this into their strategy. We are happy to discuss if this strategy might make sense for your unique financial situation.
  •  Federal stimulus funds have started to arrive in individual’s bank accounts this week
    • U.S. residents will receive the Economic Impact Payment of $1,200 for individual or head of household filers, and $2,400 for married filing jointly if they are not a dependent of another taxpayer and have a work eligible Social Security number with adjusted gross income up to:
      • $75,000 for individuals
      • $112,500 for head of household filers and
      • $150,000 for married couples filing joint returns
      • Taxpayers will receive a reduced payment if their AGI is between:
        • $75,000 and $99,000 if their filing status was single or married filing separately
        • $112,500 and $136,500 for head of household
        • $150,000 and $198,000 if their filing status was married filing jointly
        • You can check on the status of your payment or enter your bank account information here: https://www.irs.gov/coronavirus/get-my-payment
  •  Good News From Around the World 

We hope that you have a nice weekend and please do not hesitate to reach out with any questions at 907-677-8300.


The Planning Group of the Northwest

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