Month: May 2020

Unlike the federal government, New Jersey is barred from operating at a deficit by its state constitution. That effectively forces spending cuts in the event of unanticipated financial downturns. As such, NJ has frozen $920 million in state government spending for the rest of the fiscal year as it grapples with a “significant” slowdown in tax collections in response to COVID-19. The "freeze" doesn't mean the payments won't be made - just that that they will be delayed. The biggest item on the list is $142 million for property tax credits paid through the homestead benefit program.

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The coronavirus stimulus package, known as the CARES Act, waives required minimum distributions (RMDs) from retirement savings accounts for 2020. Since RMDs are taxable, the waiver gives retirees who can afford to skip their 2020 distribution some amount of tax relief. Also, if you qualify, distributions prior to age 59 1/2 of up to $100,000 are not subject to the 10% excise tax in 2020, and distributions of up to $100,000 this year can be reported as income over three years and/or repaid.

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