The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law by President Donald Trump on March 27, 2020. The legislation provides approximately $2.2 trillion of fiscal stimulus including:
Many of the relief measures included in the package relate to programs overseen by multiple governmental agencies. Some measures will become available more quickly than others. We will keep you informed as new programs become available that are related to the financial services we provide.
The CARES Act provides cash assistance directly to eligible taxpayers among other opportunities for relief.
The U.S. Treasury has stated it will issue refund checks as rapidly as possible, and officials are hoping for April. The full credit amount of $1,200 for individuals and $2,400 for couples is available for individuals with income at or below $75,000 ($112,500 for heads of household) and couples with income at or below $150,000. You will receive an additional $500 per child. Your tax rebate amount will be reduced by $5 for each $100 your income exceeds the income limits. That means for those without children, an individual will not receive a rebate if his or her income exceeds $99,000 or for couples, more than $198,000 of income.
401K and IRA early withdrawal penalties
10% early withdrawal penalties will be waived for certain coronavirus-related 401k and IRA distributions up to $100,000 made during 2020.
Federal student loan payments will be waived for up to six months, and interest will not be accrued during this period.
Individual unemployment benefits provided by states will increase by an additional $600 per week for four months, retroactive to January 27, 2020.
The Act creates a moratorium on missed payment reports to credit reporting agencies for the duration of the public health emergency and 120 days thereafter.
Foreclosures will be prohibited on all federally-backed mortgage loans for 60 days beginning March 18, 2020, and up to 360 days of forbearance (180 days, plus one 180-day renewal) will be provided for borrowers of a federally-backed mortgage loan who have experienced a financial hardship related to COVID-19.
IRAs & HSAs
Required Minimum Distributions Suspended – Individuals, including beneficiaries, will not be required to take their 2020 required minimum distributions (RMDs) from their IRAs. This RMD waiver also applies to individuals who turned 70½ in 2019 but did not take their RMD before January 1, 2020.
IRA/HSA Contribution Deadline Extended – Since the tax return filing deadline for 2019 income tax returns was extended to July 15, 2020, the deadline for making a 2019 contribution to an IRA or HSA also is extended to July 15, 2020.
Early Distribution Penalties – The 10% penalty for taking early distributions from qualified retirement plans is waived for distributions up to $100,000, taken between January 1, 2020 and December 31, 2020, for qualified individuals. Qualified individuals are defined as:
an individual (or the spouse or a dependent of that individual) who is diagnosed with COVID-19 or SARS-CoV-2 in an approved test; or
an individual who suffers related adverse financial consequences, or suffers from other factors as determined by the Secretary of the Treasury.
IRA Beneficiaries subject to the 5-year rule – The 2020 year will not be counted for purposes of a five-year payout period for a beneficiary. (This provision will not alter a required beginning date for years after 2020).
Delayed Contributions to SEP Plans – Required minimum contributions for 2020 to Simplified Employee Pension plans can be delayed until January 1, 2021.
The goal of the Act is to provide financial assistance to businesses and incentivize businesses to keep employees on payroll. These provisions have been commonly referred to as the Paycheck Protection Program.
The Act focuses on the Small Business Administration (SBA) Section 7(a) guaranteed lending program. SBA will provide additional guidance and implementation dates following enactment of the Act.
Assistance for mid-size businesses is being accounted for in provisions related to the severely distressed sectors of the economy:
Thomaston Savings Bank offers several alternate banking solutions for those that wish to avoid public places or cannot visit us in person during this time, including:
During a time of economic uncertainty, it is natural to be concerned about the safety of your hard-earned money. Thomaston Savings Bank is a member of the Federal Deposit Insurance Corporation (FDIC). Since the FDIC was founded in 1933, no depositor has ever lost a penny of FDIC-insured funds. Today, the FDIC insures up to $250,000 per depositor per FDIC-insured bank. An FDIC-insured account is the safest place for you to keep your money.
Unfortunately, fraudsters are finding ways to take advantage of fears related to the coronavirus. Learn about the common scams and what you can do to protect yourself.
It is important to seek information from official and well-supported sources. Here are some resources for your reference:
A Message From Our President & CEO
To Our Customers and Community,
Amid the pandemic that has gripped our nation and the world, our daily lives are remarkably different than they were just a short time ago. Concern about our personal health, and the health of our family, friends, and neighbors, now commands our daily routine. As New Englanders, we usually look forward to spending more time outdoors at this stage of year, as temperatures rise, daylight becomes more abundant, and the spring sports season nears. Rather, we find ourselves in an indeterminate state of isolation to do our part to reduce the spread of illness.
The health and well-being of our customers, employees, and community is paramount to everything we do. We recently announced that we closed our branch lobbies to walk-in traffic until further notice. Rest assured your trusted bankers are still available by phone or appointment if and when you need them.
To provide immediate relief to those who may be facing financial hardship, we made the following changes, effective March 23, 2020 for all customers, for a temporary period to end no sooner than April 30, 2020:
If you have a loan with us and you are experiencing, or expect to experience soon, financial hardship please contact us so we can discuss options that may help you.
Please visit our website regularly at ThomastonSB.com for valuable information about our commitment to ongoing operation throughout this challenge. Included on our website are resources for the digital banking services we offer that can help you complete more of your banking activity from the comfort of your home or business. We will continue to communicate updates as we adapt our business to best serve you.
Thomaston Savings Bank has weathered many difficult economic periods over its history of 146 years. In this time of uncertainty, it is important that you know we operate today from a position of fiscal strength that was built by adhering to safe and sound banking principles for over a century. We are well capitalized and stand ready to support the people and businesses in our community for the duration of this historic period. With the spirit of community that bonds us all, we will persevere together.
Thank you for the trust you continue to place in us. We wish you and your family good health, now and always.
Stephen L. Lewis
President & CEO
In our commitment to the health and well-being of our customers, employees, and community, we will limit all branch offices to drive-up only service beginning Friday, March 20. All branch lobbies will be closed to walk-in traffic until further notice as a proactive measure to help mitigate the spread of illness.
We will reopen branch lobbies as soon as possible and we will notify you once that happens. We strongly encourage you to use our digital tools and other resources for self-service banking and 24/7 account access.
We will meet with customers by appointment for bank services that cannot be completed through the drive-up or other self-service channels. To schedule an appointment, please call us at 855.344.1874.
Thomaston Savings Bank is monitoring and taking actions to respond to the evolving public health situation around COVID-19. The health, safety, and well-being of our customers, employees and community is our top priority. We will continue to monitor developments around COVID-19 and provide updates on this page as they relate to our operations. We are committed to remaining your trusted financial partner during this time and we appreciate your business.
We strongly encourage you to use Thomaston Savings Bank's digital tools and other resources for self-service banking and 24/7 account access.