URGENT ACTION FOR ALL CLIENTS:
CARES Act Election Form
Download CARES Act Election Form
The CARES Act, signed into law on March 27, 2020, allows plan sponsors, if they so elect, to amend their retirement plans to provide economic relief for eligible participants affected by the COVID-19 outbreak. If you elect to provide any or all of these CARES Act relief provisions, you can immediately implement these provisions operationally pending the adoption of formal plan amendments at a later date.
In the meantime, we need to know which amendments you wish to adopt and how you will administer your plan for the current plan year. According, we have a CARES Act Election Form for you to complete and return regarding your amendment elections. Please complete and return your signed form to your Menke Benefits Consultant as soon as possible, together with a Cc to the Menke lawyer, if any, assigned to your case. If we do not receive a completed form by June 30, 2020, we will assume that you have elected not to implement any of the changes authorized by the CARES Act, and we will continue to administer your plan in accordance with your existing plan provisions.
If you have any question about any of the CARES Act relief provisions, please feel free to call or email the Menke Benefits Consultant or Menke lawyer assigned to your case.
Click Here to Download the Form
MEMORANDUM #1
Re: ESOP-Related Provisions of CARES Act and FFCRA Memorandum
Click to Download Memorandum
On March 18, 2020, President Trump signed the Families First Coronavirus Response Act (the “FFCRA”) which provides small and midsized employers refundable tax credits for the cost of providing paid sick and family leave wages to their employees for leave related to COVID-19. On March 27, 2020, President Trump also signed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) which provides additional financial resources for individuals and businesses affected by the COVID-19 crisis. Below is a Memorandum to highlight some of the pertinent provisions of these Acts that apply to ESOP companies and to ESOP participants.
MEMORANDUM #2
Re: Strategies for Both C Corps and S Corps to Minimize Taxes and Maximize Cash Preservation During the COVID-19 Crisis
Re: Extension of Certain IRS Filing Deadlines
Click to Download the Memorandum
While Menke & Associates, Inc. is not in the business of rendering tax advice, we do want to call to your attention the described strategies and tax filing deadlines that may or may not be beneficial in your circumstances. If any of these strategies or filing extensions do appear to have merit, we suggest that you discuss them with your outside CPA firm and/or other tax advisors.
Client Web Seminar
How to Raise Cash for Your ESOP Company During COVID-19 using CARES-Act Tax Strategies
During this one hour webinar, we will review two important tax provisions of the CARES-Act: (1) How you can raise cash using NOL provisions and (2) combine them with cash or stock contributions to your Employee Stock Ownership Plan (ESOP). The format is 30 minute overview followed by 30 minute live interactive Q&A from participants.
