HSC CORONAVIRUS 
C OMMUNICATION  

Edition #12
April 8, 2020
HSC COVID-19 Fast Response Team
We are here to help!

In these uncertain times with multimedia channels reporting conflicting and sometimes incorrect information, our firm is working to add clarity to this situation by providing new and verified information as it becomes available to us. We have also set up a Coronavirus Resource Center on our website for ongoing information. 

In addition, we have created the HSC COVID-19 Fast Response Team to serve our clients in addressing the difficult decisions they are being faced with on a daily basis. This dedicated multi-disciplinary team consists of our tax, payroll, HR, capital markets and accounting professionals. 

If you have questions or would like to speak with this team please contact your HSC team member or Kyle Wininger, CPA, CICA, CVA, CFE at kwininger@hsccpa.com
10 Financial Planning Opportunities to 
Consider Now

The current market situation is an example of why financial planning (with a keen eye toward tax outcomes) is the cornerstone of investment decisions, retirement planning, business transitions, insurance choices, etc.  A drop in the market provides plenty of planning opportunities to consider.
  1. Roth conversionsConvert Traditional IRA accounts to Roth IRAs to maximize future tax-free growth and income distributions as the market recovers.
  2. Increase plan contributions - Increase current 401k/403b contributions to "buy low" when the market is down and increase tax-deferred growth potential.
  3. 529 Plans - For the same reasons above, consider "max funding" or taking advantage of the 5 year "bunching" rule for gifts to 529 Plans.
  4. RMD's - Stop or delay - Delay taking required minimum distributions until later in the year to allow accounts to recover (or don't take them at all for 2020 if you don't need to).
  5. Roth deferrals - Consider switching traditional 401k/403b deferrals to Roth deferrals if household income this year will be lower this year.
  6. Tax loss harvesting - Tax loss harvest to generate capital losses that can be used to offset capital gains now and in the future.
  7. Estate and asset protection planning - Consider several strategies for asset protection and estate tax planning.
    • Consider gifts to irrevocable trusts using assets that have reduced in value. Consider creating a Spousal Lifetime Access Trust (SLAT) that allows your spouse to control and receive income from the assets in the trust.
    • In addition to, or alternatively, sell depressed assets to the trust in return for a promissory note using current low applicable federal rates.
    • If you have grantor trusts in place (e.g. Intentionally Defective Grantor Trusts), consider swapping assets that have a currently depressed value for assets inside the trust that may be holding their values. This allows currently depressed assets to recover in value outside of your estate.
    • Create and fund Grantor Retained Annuity Trusts (GRATs).  These trusts rely on the appreciation on the assets beating the growth based on current applicable federal rates GRATs work best as estate planning vehicles when interest rates are low and with assets that are likely to appreciate significantly over time. 
  8. Invest some excess cash - Begin dollar cost averaging cash that is earmarked for long-term investment.
  9. Re-balancing - Now and going forward, awareness to portfolio re-balancing frequency to maintain appropriate allocations.
  10. Refinance - Consider refinancing your mortgage and intra-family loans - interest rates are fluctuating quickly, but may be worth looking into.
The ideas above may or may not be applicable to your personal situation and should be discussed with your advisors prior to implementation. Please contact your HSC advisor,
HKFS financial planning consultant, Kathy Ettensohn, CPA kettensohn@hsccpa.com, or
Scott Olinger, CPA, CGMA  solinger@hsccpa.com
with any questions you may have.
Paycheck Protection Program - FAQ's

The Small Business Administration (SBA), in consultation with the Department of the Treasury,
intends to provide timely additional guidance to address borrower and lender questions
concerning the implementation of the Paycheck Protection Program (PPP). 

Borrowers and lenders may rely on the guidance provided in   this document as SBA's
interpretation of the CARES Act and of the Paycheck Protection Program Interim Final Rule

This  document will be updated on a regular basis.

Please contact Scott Touro, MBA at stouro@hsccpa.com for more informtion. 
What the CARES Act Means for Individuals - Video

The CARES Act provides a tax credit in the form of a rebate check to individuals based on their most recent tax filing. Individuals will receive up to $1,200 while joint taxpayers will receive up to $2,400. Furthermore, taxpayers will receive an additional $500 for each qualifying child. 

The amount of the checks will be based on your most recent tax filing for the tax year 2018 or 2019. If your Adjusted Gross Income was $75,000 or less for individuals, $112,500 or less for head of household, or $150,000 or less for married filing jointly, you should be eligible for the full amount. If your adjusted gross income was more, then the amount of your stimulus check will be reduced until you reach the maximum limits. If your adjusted gross income was greater than $99,000 for individuals, $146,500 for head of household or $198,000 for married filing jointly with no kids, you will not receive anything.

For more information, watch the video and download the whitepaper on   What the CARES Act means for individuals .

Please contact John Rittichier, CPA at jrittichier@hsccpa.com or Mike Vogel, CPA at mvogel@hsccpa.com for more information.
Keeping Other Members of Your Team Informed

If you would like other members of your team to begin receiving this communication, please forward to each individual and they can subscribe here or email Leslie Wight at lwight@hsccpa.com and she will add them to the communications.



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