Please click on the link below to see Crestwood’s first webinar hosted by Michael Eckton, CEO and Managing Partner, with Robert Ix, Managing Partner and John Ingram, CIO.
Helping To Fight Covid-19
The impact of Coronavirus today is real. Schools and businesses are shuttered and for many of us home is our new favorite spot “to go” – to the office, school, exercise, or dinner and a movie with our families. Today, we are finding new ways of having everything at our fingertips, at home.
As we adjust to this “new normal” the best way to help fight Covid-19 is to follow the Center for Disease Control (CDC) guidelines. Stay home, practice social-distancing, wash your hands often, clean frequently touched surfaces, cover your mouth when you sneeze and cough and don’t touch your face.
While staying at home is important guidance to help fight Covid-19, many people are interested in offering additional help and seeking advice on giving in this time of need. This is evident in the worldwide philanthropic response to Covid-19 – donations already exceed $2 billion and continue to rise. Congress passed the CARES Act prioritizing philanthropy by instituting a new $300 tax deduction for donations made directly to charity. The CARES Act also relaxes the limit on charitable contributions for itemizers, increasing the deduction from 60% to 100% of gross income. Countries around the world are responding similarly.
Today there are many worthy charities in need. These are the three key categories you may want to consider as you determine the impact you want from your donation.
• Support the fight against Covid-19 through relief funds
• Protect critical social services that must operate during Covid-19
• Sustain organizations that will be disproportionately affected by Covid-19
As you consider how you want to respond, The Center for Disaster Philanthropy reminds us to plan for the multiple phases and needs in this crisis before giving. This organization has a number ideas on how you may want to allocate your donations. Candid, an organization that provides data and research to help nonprofits, also has a comprehensive Covid-19 resource page to help you identify the organization(s) that you may want to support. If you use a donor advised fund for your philanthropy, most funds are sharing regularly updated philanthropic advice during this pandemic to help support the communities and nonprofits impacted.
At Crestwood, we discuss philanthropy with our clients throughout the year. Please contact your Wealth Manager if you have additional questions about your personal strategy.
Crestwood is fortunate to remain fully operational with our entire team working remotely however, we recognize that many companies and individuals are working under tenuous long-term security and/or extraordinarily challenging circumstances. We have enormous respect and appreciation for all those on the frontlines within our healthcare systems as well as police, firefighters, grocery clerks and so many others still working to support us during this difficult time.
To help provide resources and other aide to those most impacted by the coronavirus fallout, Crestwood is pleased to support these organizations::
• Massachusetts Covid-19 Relief Fund
• Boston Resiliency Fund
• Fairfield County Covid-19 Resiliency Fund
• Americares
Thank you to all of our clients, friends and family members in essential industries who are needed to fight this pandemic and keep our economy going.
Crestwood Expands Its Portfolio Management Team
FOR IMMEDIATE RELEASE
Crestwood Advisors Group, LLC is pleased to announce that Greg F. McSweeney, CFA has been hired to the position of Portfolio Manager, Director in our Boston office.
“We are thrilled to welcome an individual with Greg’s skills and experience to Crestwood Advisors”, said Michael A. Eckton, CFA, CEO & Managing Partner. “Greg is a wonderful addition to our team and we are excited for the additional depth and fresh perspectives we expect him to bring to our clients. Perhaps particularly given the current uncertain environment created by the coronavirus, Greg’s hire demonstrates our ongoing commitment to our clients to invest in the necessary resources to deliver the exemplary service they expect of us.”
Prior to joining Crestwood Advisors, Mr. McSweeney was a Portfolio Manager at Bainco International Investors, a Boston-based registered investment advisor. While at Bainco, Greg was responsible for co-leading the investment team and delivering investment strategies tailored to high net worth individuals and families. Prior to Bainco, Greg spent over a decade in New York in roles investing in equity and fixed income. He earned an MBA from NYU Stern School of Business and a BA from Dartmouth College.
The CARES Act and How it May Affect You
In response to the evolving COVID-19 global pandemic, Congress has passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a $2 trillion emergency fiscal stimulus package aimed at helping individuals, businesses, healthcare entities and state and local governments. The CARES Act is the most recent of three bills focused on reducing the economic impact of COVID-19 and is the largest economic stimulus in American history.
Key provisions in the CARES Act:
The CARES Act includes direct payments to taxpayers. Individuals (single filers) who had less than $75,000 in adjusted gross income (AGI) in 2019 will receive a one-time payment of $1,200, while married couples with AGI up to $150,000 will get $2,400. Additionally, taxpayers will receive an extra $500 for each qualified child. Single filers with AGI above $99,000 and married filers with AGI above $198,000 will not receive payments.
Retirement account rules have been have been modified for 2020. Required Minimum Distributions have been waived for traditional IRAs and inherited IRAs. Distributions that have already been processed can be returned within 60-days and avoid taxable income.
For taxpayers who are under age 59 ½, the CARES Act waives the 10% penalty on withdrawals from retirement plans and IRAs for distributions up to $100,000 for IRA owners and participants in workplace retirement plans that have been impacted by this pandemic. The withdrawals qualify if the taxpayer, their spouse, or a dependent is diagnosed with COVID-19 or SARS-COV-2, or if they suffer adverse financial consequences due to the pandemic. The taxpayer may repay part or all of this withdrawal over three years, any portion that is not repaid may be included in income for tax purposes over this same period. Loan repayments that are due in 2020 may be delayed for one year.
A new charitable deduction is included in the bill for up to $300 in annual charitable contributions. To qualify, you have to give cash to a qualified charity and not to a donor-advised fund. It also relaxes the limit on charitable contributions for itemizers – increasing the deduction from 60% of AGI to 100% of gross income. These charitable changes are not currently limited to 2020.
Other factors that could impact you:
- The CARES Act increases unemployment benefits $600 per week for up to four months as well as an expansion of benefits for those who would otherwise not qualify
- Federal student loan payments can be deferred through September 30, 2020 and income tax exclusion for individuals who get student loan repayment assistance from their employer
- Expanded insurance coverage for COVID-19 treatment and funding for health care providers and suppliers
- Certain small businesses with up to 500 employees will be able to take out loans (up to $10M depending on payroll costs and other factors), which will be eligible for forgiveness if used to cover payroll and other expenses (like rent and utilities) along with some other ‘employee retention’ tax credit opportunities. Other benefits for businesses include a delay in the employer’s portion of Social Security payroll tax until January 1, 2021.
Beyond benefits for individuals and businesses, the CARES Act provides for $454 billion in emergency lending to municipalities, airlines and other businesses critical to US national security and another $150 billion allocated proportionally to state and local governments to offset amounts used to respond to the pandemic.
If you have any questions about the CARES Act, or what it means to you, please do not hesitate to contact your team at Crestwood Advisors.