Tax

The Internal Revenue Service projects that lower levels of employment in the U.S. could persist for years, showcasing the economic fallout of the coronavirus pandemic.

While it can be a great outlet for employees who want to help coworkers, or their favorite charities during the pandemic, PTO sharing can also present tax issues if not handled properly.

It won’t count as income to employees, but they also won’t be able to deduct it.

The majority of U.S. workers do not have enough savings to help them in the event of a medical emergency and often turn to their retirement funds for help.

Gauging any possible changes to their health insurance coverage is just one consideration they must address before they retire.

For starters, they can use the windfall to pay off debt, shore up their HSAs and build a cash reserve.

For one, clients will owe taxes still on the distributions, unless they recontribute the money into the account within three years.

Older clients are advised to take extra steps to protect their finances as the current crisis may leave them prone to making poor financial decisions.

Clients are advised to minimize spending and tap possible sources of cash and credit, including their tax refund.

While some retirees have seen a substantial increase in spending, many others are enjoying financial freedom.