The $2.2 trillion coronavirus stimulus package has been signed into law, and Social Security recipients will be included among the millions of Americans getting a $1,200 stimulus check. While there have been promises that the checks will start going out very soon, in reality the one-time payments may take several months before they actually show up in your bank accounts.
Under the plan, individuals with incomes below $75,000 will receive $1,200, while married couples with incomes below $150,000 can expect to get $2,400. Parents with children under the age of 17 would receive $500 for each child. Payments for people with incomes greater than $75,000 / $150,000 start phasing down, and would phase out entirely for those with incomes higher than $99,000 / $198,000.
The payments, which will be distributed by the IRS, are technically advance tax credits for 2020. Anyone who has already received a tax refund for 2019 will likely be among the first to receive these “tax rebate checks. It will take longer to set up the system for physical checks to be mailed — perhaps several months, so be patient and watch for a notice about the payments that will be coming in the mail.
With significant losses in the stock market, retirement account holders are worried about having to sell assets at a loss to satisfy required minimum distribution (RMD) rules. We were relieved to learn of provisions that waive the RMD requirements from retirement accounts for 2020.
The enormous stimulus bill contains numerous provisions that affect your healthcare coverage and out-of-pocket costs. We will be sending you more details about these soon as information become available. Please watch your email.
Source: “Show Me The Relief Money — No Promises On when Coronavirus Checks are Coming,” Vanessa Romo, NPR, March 26, 2020.