Senate to Vote on Coronavirus Stimulus Package—What This Can Mean For Your Private Practice & Employees

Mar 25, 2020

Senate to Vote on Coronavirus Stimulus Package—What This Can Mean For Your Private Practice & Employees

The Coronavirus Aid, Relief and Economic ("CARES") Act Passes Its Initial Hurdle

As we continue through this unprecedented time, some good news is emerging. As you may have heard, the Senate has reached a bipartisan agreement on a $2 trillion aid package to the U.S. economy - the most substantial economic stimulus bill and rescue package in American history.

The Senate will vote on it later today, and then the House will take it up, and hopefully pass it soon after. The so-called Coronavirus Aid, Relief and Economic Security ("CARES") Act is designed to flood our economy and help stabilize households and businesses that have been impacted by the Coronavirus pandemic.

This is good news for doctors who have had to lay off or furlough their employees while their offices are shut down. Unemployment benefits across the states will be ramped up in a big way. We're heartened to see that Chuck Schumer is supporting this and referred to it as "unemployment on steroids," during an interview with MSNBC this morning. The CARES Act would increase unemployment checks by up to $600 per week for four months. Also, under the CARES Act, the government will be mailing checks worth $1,200 (plus $500) per child to most Americans (High earners won't qualify, however). Therefore, don't feel terribly guilty that you have to send your team to unemployment temporarily. These payments will replace all or most of their average compensation.

The CARES Act will also devote roughly $350 billion in loans to small businesses to help keep them afloat.
We will report on this more as details emerge.

In addition, there will be a number of provisions easing contributions to retirement plans, including making it easier to recover big asset value losses in cash balance plans.

The aid package will also be providing relief to big businesses with direct assistance to companies deemed to be crucial to national security. This has had a major stabilizing effect on the markets - thankfully. We know there is some political divide over direct government aid, but when the government imposes the shutdown, it's incumbent on the government to provide some relief.

We will be giving a much more comprehensive update once the bill is passed into law.

On an un-related note - this is another reminder to consider converting a traditional IRA to a Roth IRA while the stock market. The conversion will be taxable, but the eventual recovery will take place in the tax-free IRA. If your 401(k) plan is where your pre-tax retirement is, then you can use this as the source of the conversion. This can be done one of two ways. First, your plan will either allow you to take an in-service distribution or if it doesn't it can be amended to do so. The distribution should go to the Roth IRA. Second, you can convert pre-tax 401(k) and profit-sharing balances into Roth 401(k) and keep the money in the plan. For this, the plan will likely need to be amended. Discuss with your plan provider. If this is something you're considering, then act sooner than later. Even though we may be going into a temporary recession, the stock market is forward-looking and may start recovering in the near future.

Collier & Associates, Inc. will update our blog as the CARES Act progresses. We take pride in continuing to keep our Newsletter subscribers and website visitors updated on current events during this extraordinary time.


Collier & Associates, Inc. provides this information as a service to clients and other friends for educational purposes only. It should not be construed or relied on as legal advice or to create a lawyer-client relationship. Readers should not act on this information without seeking advice from professional advisors.


  1. Dr. Jeffrey Haug on at 1:03 pm

    Thank you for the update.

  2. Dr. Barry Feldman on at 12:04 pm

    In this unprecedented time, would it be possible for our team members, now temporarily unemployed , be allowed to borrow money from their share in our company profit-sharing plan…at lease to tide them over during this time of “no salary”.

  3. Gary Roach on at 3:27 pm

    Is there anything that would prevent an owner/dentist (who is a W2 employee) from receiving relief as stated in the Families First Act (12 weeks at 2/3 pay with a max of $200/day if you have to stay home with an out of school child) or Unemployment Insurance?

    • Timmy Cooper on at 3:55 pm

      Our state dental association has stated that since we are required to be available for emergency care, we are technically not unemployed. Not sure the risk is worth the reward.

  4. Aloha and thank you for all the updates during this crazy time!

  5. Michael Shakin on at 2:51 pm

    thank you for keeping us updated. good job!

  6. STEPHEN AKSEIZER on at 2:42 pm

    I am a little confused. Can a 401k holding be transferred to a Roth IRA or must it be transferred to a 401K roth.

    • ira camhi on at 3:12 pm

      Will Congress suspend RMD Distributions?


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