The Coronavirus Aid, Relief and Economic Security (CARES) Act contains provisions that make it easier to withdraw funds in certain tax-advantaged retirement accounts like 401(k)s and traditional Individual Retirement Accounts (IRAs). These temporary changes eliminate tax penalties on certain early withdrawals and relax rules on loans from some types of accounts with the objective of helping Americans deal with the financial fallout of the coronavirus outbreak. The CARES Act also waives RMDs for 2020.
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Retirement plans are often one of the most valuable assets a couple acquires during a marriage. If a couple divorces and there is an agreement or judgment that requires all or a portion of the employee spouse’s retirement plan to be shared with the spouse or former spouse, the division is accomplished through a Qualified Domestic Relations Order (QDRO). The spouse or former spouse of the employee is often called an “alternate payee” for purposes of the QDRO. While state law governs the division of most marital assets, most employment related retirement plans are governed by the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code (Code). In general, ERISA and the Code prohibit a retirement plan participant from assigning a portion of his or her interest in the plan to another person. 
After contributing through payroll and self-employment taxes for decades of work, many Social Security beneficiaries are astonished when they learn that their benefits may be subject to federal and sometimes state income taxes. When benefits were first paid in 1940, they were explicitly and completely excluded from federal taxable income. However, in the 1970s and in the midst of Social Security’s first funding crisis, it became necessary to contemplate some changes. The National Commission on Social Security, chaired by Alan Greenspan, recommended taxing 50% of Social Security benefits. Congress did not like the thought of taxing low-income retirees. In 1983, Congress passed and President Reagan signed into law legislation which would potentially require up to 50% of Social Security benefits to be included in taxable income. As you will see in this article, some low-income taxpayers can exclude some, and in certain cases, all their benefits from taxable income. 
I am often asked whether it is a good idea for elderly parents to transfer their home to their children. I always ask: “Why do you want to do this?” The most common reason is to protect the house in the event one or both of the parents need nursing home care.
Decisions regarding Social Security can be deviously complicated. There are thousands of rules, thousands upon thousands of additional codicils to clarify the rules, annual changes, and recent legislation, the Bipartisan Budget Act of 2015 (BBA), which drastically modified the planning landscape. Each day 10,000+ “baby-boomers” reach retirement age and many other individuals of pre-retirement age make critical choices impacting their potential Social Security benefits. These decisions involve when to claim benefits, what kind of benefit to request, and when to marry, divorce, or remarry. Too often people are misinformed and mislead when they make these assessments. We need to be aware of certain fundamental concepts in order to get the maximum benefits from Social Security and avoid costly mistakes. After all, we have paid for these benefits, and we should get what we are entitled to.