Unpacking the CARES Act

In the midst of the pandemic in March 2020, U.S. lawmakers passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which offered $2 trillion+ in stimulus funding for the U.S. economy. While this has been a welcome development for individuals and businesses, the Act itself is a labyrinth of features and eligibility conditions that pose important questions for financial professionals. To outline the basics of the Act’s economic benefits and to offer an interpretation of some of its more complex provisions, John is joined by Chris Frank, head of defined contribution consulting at John Hancock Retirement, and Ed Jastrem, CFP, director of financial planning at the Massachusetts-based registered investment advisor Heritage Financial. The topics at issue range from the expansion of unemployment benefits and the impact on federally backed student loans and mortgages to coronavirus-related retirement plan distributions. In addition, the discussion highlights ways in which the Act is still being interpreted by legal and tax professionals, particularly around distributions and guidance for retirement plans and their advisors.