On March 11, the $1.9 trillion ARP Act (American Rescue Plan Act) of 2021 was signed into law to help facilitate the United States’ recovery from the economic and health impacts of the COVID-19 pandemic. The ARP Act extends some aspects of the CARES Act (Coronavirus Aid, Relief, and Economic Security Act) of 2020, and other 2020 legislation, but also provides new recovery strategies for combating the economic impact of the pandemic.
In addition to a new round of direct payments (with more restrictive phaseouts applying this time), there are several other key provisions that provide planning opportunities in 2021 and beyond:
In addition to the above planning items, the IRS provided an extension for filing 2020 taxes to May 17, 2021, allowing additional time for taxpayers to gather tax forms (K-1s) as well as to determine and fund individual retirement plan contributions (e.g., IRAs, Roth IRAs, SEP IRAs).
Please contact your Litman Gregory Advisor for more information and to review your situation.
Advisor Q&A: Tax Planning and the American Families Plan with Senior Advisor Chris Wheaton
The American Families Plan was recently released by President Joe Biden and includes many of the provisions outlined during his campaign. We asked Litman Gregory Senior Advisor, Chris Wheaton, to answer some questions about key proposed tax law changes, and related tax planning ideas for our clients to consider in 2021 and beyond.
Research Update: Our Views on Inflation
As mentioned in our recent commentary, investors have been concerned about inflation as economic activity picks up. But what we see is an economy reflating as it recovers from a recession, not one on the edge of a hyperinflationary spiral. In preparation, our portfolios are already positioned to offer some inflation protection.
Key Features of the American Rescue Plan Act of 2021
The American Rescue Plan Act of 2021 was signed into law in March to help aid in the United States’ recovery from the impacts of the COVID-19 pandemic. In this post we review how this Act extends some aspects of the CARES Act and other 2020 legislation, and several key provisions that provide planning opportunities in 2021 and beyond.