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.
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