Changes to Savings Account Withdrawal Limits and Fees

A new rule permits banks to allow customers more than six withdrawals per month from savings accounts and waive excessive transaction fees. Previously, one of the main distinctions between checking and savings accounts was the inability to withdraw from a saving account more than six times per month without excessive transaction fees. This only relates to taking money out of a savings account, not putting money in savings accounts.

The key to understanding the new rule is that banks now have the choice whether to limit transfers from savings accounts. They were previously mandated to limit transfers. So each bank can now come up with its own rules for savings account transfers. For instance, Ally Bank is allowing unlimited transfers from savings accounts without charging excess transaction fees until July 18, 2020. Each bank may be different so you will need to check with your bank for its new rules.

 


Press Release
April 24, 2020

Federal Reserve Board announces interim final rule to delete the six-per-month limit on convenient transfers from the “savings deposit” definition in Regulation D

The Federal Reserve Board on Friday announced an interim final rule to amend Regulation D (Reserve Requirements of Depository Institutions) to delete the six-per-month limit on convenient transfers from the “savings deposit” definition. The interim final rule allows depository institutions immediately to suspend enforcement of the six transfer limit and to allow their customers to make an unlimited number of convenient transfers and withdrawals from their savings deposits at a time when financial events associated with the coronavirus pandemic have made such access more urgent.

The regulatory limit in Regulation D was the basis for distinguishing between reservable “transaction accounts” and non-reservable “savings deposits.” The Board’s recent action reducing all reserve requirement […]

Check On Status Of Economic Impact Payments

The IRS started to distribute stimulus payments this week via direct deposit. If you haven’t received yours and are looking for your Economic Impact Payment, check the “Get My Payment” page at the IRS website.

Get My Payment Website from IRS

 

 

At this website you can find:

  • Your payment status
  • Your payment type
  • Whether they need more information from you, including your current  bank account information

 

If you want to find out how much you should expect to receive, there is a payment calculator available online. See our previous article (click here).

TurboTax To Help Register Americans For Stimulus Checks

TurboTax launched a free website to help those Americans who are not required to file tax returns be able to more easily register with the IRS to get a stimulus payment. Go to https://turbotax.intuit.com/stimulus-check/. Look under the section “If you don’t need to file your taxes this year.” There you can register to receive your stimulus check, also know as Economic Impact Payments.

For all Americans, they also offer a convenient calculator to figure out how much to expect in your stimulus payment as well as a lot of other helpful information about the stimulus program.

 



TurboTax - Choose Easy

 


Press Release

TurboTax to Help Millions of Americans Get Their Stimulus Payments with Launch of Free Stimulus Registration Product

TurboTax Encourages Taxpayers to File Their 2019 Tax Return to Receive Their Refund and Stimulus Payment Faster or Register through the TurboTax Stimulus Registration to Ensure They Receive Their Stimulus Payment

SAN DIEGO–(BUSINESS WIRE)– TurboTax, the nation’s leading online tax preparation service from Intuit Inc. (Nasdaq: INTU), today launched a free, Stimulus Registration product designed to help millions of Americans who are not required to file a tax return easily register with the IRS to get their stimulus money.

According to the IRS, 80% of Americans are eligible to receive a stimulus payment. For the tens of millions of taxpayers, who have already filed a 2019 tax return or are Social Security Recipients, there is no action needed. They can easily find out how much they can expect to receive through […]

Current Stimulus Payment Information (Economic Impact Payment Calculator)

Below is the latest information from the IRS about Economic Impact Payments. As mentioned, no action needed by most people at this time.

Most people have direct deposit information on file with the IRS from either there 2019 or 2018 returns. For those that don’t, in the coming weeks the Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.

If you want to figure out how much you may get, use the Payment Calculator at Forbes.

UPDATE: TurboTax also has a calculator as well as a way to register for a stimulus payment if you are not required to file income taxes.


From https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know

Check IRS.gov for the latest information: No action needed by most people at this time

IR-2020-61, March 30, 2020

WASHINGTON — The Treasury Department and the Internal Revenue Service today announced that distribution of economic impact payments will begin in the next three weeks and will be distributed automatically, with no action required for most people. However, some taxpayers who typically do not file returns will need to submit a simple tax return to receive the economic impact payment.

Who is eligible for the economic impact payment?

Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible. Social Security recipients and railroad retirees […]

Social Security Recipients To Automatically Receive Economic Impact Payments

After a few days of uncertainty, it was announced today that Social Security recipients will not have to file anything to receive their $1200 Economic Impact Payments. This pertains to those people on Social Security who no longer are required to file federal tax returns each year. Recipients will receive these payments as a direct deposit or by paper check, just as they would normally receive their benefits.

Those Social Security recipients who filed tax returns for 2018 or 2019 will be processed the same as other tax filers under the income limitation rules phasing out between $75,000 and $99,000.

Also, those Social Security recipients who were used as a claim for dependent credit in 2019 (or 2018 if a 2019 return not yet filed by claimant) may not see a payment. We await further clarification on how that specific situation will be handled.

See the IRS press release below.

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Social Security Recipients Will Automatically Receive Economic Impact Payments

April 1, 2020

WASHINGTON – The U.S. Department of the Treasury and the Internal Revenue Service today announced that Social Security beneficiaries who are not typically required to file tax returns will not need to file an abbreviated tax return to receive an Economic Impact Payment. Instead, payments will be automatically deposited into their bank accounts.

“We want to ensure that our senior citizens, individuals with disabilities, and low-income Americans receive Economic Impact Payments quickly and without undue burden,” said Secretary Steven T. Mnuchin. “Social Security recipients who are not typically required to file a tax return need to take no action, and will receive their payment directly to their bank account.”

The IRS will use the information on the Form SSA-1099 and Form RRB-1099 to generate $1,200 Economic Impact Payments to Social Security […]