Ally Bank Deferring Payments and Fees For Some Customers

In effort to assist those currently in need and trying to figure out how to make ends meet, Ally Bank is taking steps to help. Mortgage and auto loan customers can get up to 120 day deferments on loan payments. They will also be suspending many banking fees for the next 120 days. See below for their statement and contact them for details.


Statement From Ally Bank

With the growing spread of the new coronavirus (COVID-19), we know this is a difficult time for many, and we’re committed to doing what’s right for you. We’re making some changes to support you during this time, and we’re working behind the scenes to find more ways we can make sure you have access to the financial services you need to help you stay healthy and have some peace of mind.

We encourage you to visit ally.com or download our app for 24/7 access. This is an unprecedented situation, and we’re doing everything in our power to help people who have been impacted by COVID-19, but call wait times may be longer than usual.

Here is a summary of updates that we hope will help.

Suspended fees at Ally Bank. For the next 120 days, we’re waiving fees for overdrafts, excessive transactions for savings and money market accounts, and expedited shipping of checks and debit cards. As always, there are no monthly maintenance fees or balance minimums to bank with us. If you have questions, contact us at 1-877-247-2559. We’re here 24/7.

Deferred payments for Ally Auto financing. You can defer your payment for up to 120 days. During this time, finance charges will accrue, but you won’t be charged any late fees. Starting March 20, you’ll be able to log in at […]

90 Day Extension To Pay Federal Taxes Announced

SEE NEW ARTICLE FROM MARCH 20, 2020 FOR UPDATED INFORMATION


Today, the White House announced individual taxpayers will get an additional 90 days to pay federal income taxes due for 2019. Like the recent student loan interest waiver, there is no clarity yet on how this will be implemented. The plan is to waive interest and penalties for 90 days on taxes due by April 15, 2020. It is anticipated that taxpayers still need to file taxes on time or request appropriate extensions. We await the details from the IRS.

Some states have previously announced tax filing relief for taxpayer affected by the coronavirus pandemic. For instance California extended some tax filings 2 months from April 15 to June 15, 2020. This may be extended to fall in line with the 90 day federal program.

There are many details to be sorted out. However, the federal and state policies will immediately keep cash in the private economy for a longer period of time before being paid to the government. This will allow money to stay in the economy, which are the stated goals of the recent efforts by the White House to lessen the impacts of the coronavirus pandemic on the United States economy.

2020 To Do List: Revisit Your W-4 & Tax Withholdings

The IRS recently overhauled and updated Form W-4 for Tax Withholdings. Since most people tend to complete the form once and forget it, this is the year you may want to complete the new form with your employer when it becomes available so you are good to go for 2020. Many employers have an automated system for submitting an employee’s changes for Form W-4. Please be sure to check with your employer to see if they have this option available.

The IRS also encourages everyone to use the Tax Withholding Estimator to perform a “paycheck checkup.”  This will help you make sure you have the right amount of tax withheld from your paycheck. However, you will need to wait until January to use the IRS estimator for 2020. (The estimator has not been updated yet.) See: https://www.irs.gov/individuals/tax-withholding-estimator

According to the IRS, the new Form W-4 design reduces the form’s complexity and increases the transparency and accuracy of the withholding system. While it uses the same underlying information as the old design, it replaces complicated worksheets with more straightforward questions that make accurate withholding easier for employees. Allowances are no longer used for the redesigned Form W-4. This change is meant to increase transparency, simplicity, and accuracy of the form. In the past, the value of a withholding allowance was tied to the amount of the personal exemption. Due to changes in law, currently you cannot claim personal exemptions or dependency exemptions.

Checking your withholding can help protect against having too little tax withheld and facing an unexpected tax bill or penalty at tax time next year. Also, you should always revisit the W-4 if you have major life changes, such as marriage, the birth of a child, […]

IRS Releases 2020 Retirement Contribution Limits

The new retirement contribution limits for 2020 were just released by the IRS.

401(k) contribution limits increased from $19,000 to $19,500 (with catch-up contribution limits increased from $6,000 to $6,500.)

SIMPLE retirement account limits increased from $13,000 to $13,500.

IRA contribution limits remain at $6,000.

See below for details about the $2,000 increase in the Roth phase-out range and other phase-out changes.

 

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IR-2019-179, November 6, 2019

WASHINGTON — The Internal Revenue Service today announced that employees in 401(k) plans will be able to contribute up to $19,500 next year.

The IRS announced this and other changes in Notice 2019-59 (PDF), posted today on IRS.gov. This guidance provides cost‑of‑living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2020.

Highlights of changes for 2020

The contribution limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $19,000 to $19,500.

The catch-up contribution limit for employees aged 50 and over who participate in these plans is increased from $6,000 to $6,500.

The limitation regarding SIMPLE retirement accounts for 2020 is increased to $13,500, up from $13,000 for 2019.

The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs and to claim the Saver’s Credit all increased for 2020.

Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or his or her spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor his or her spouse is covered by a retirement plan at work, the phase-outs of the deduction do not […]

Why You Should Start Saving Right Now

Business Insider has a great chart that shows how starting your retirement savings at 25 is so much better than at 35. While interest rates for savings accounts and certificates of deposit aren’t great right now, that will eventually change. It’s important to get in the habit of saving now.

See: http://www.businessinsider.com/saving-at-25-vs-saving-at-35-2014-3

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