Despite months of negotiations, the lawmakers have been unable to come up with a relief package. In the mean time, the number of coronavirus cases in the U.S. continues to surge. With money from the first coronavirus stimulus check already used and other CARES Act benefits set to expire soon, Americans desperately need another stimulus package.
With no confirmation on when the next stimulus package will be approved, many people currently depend on the CARES Act benefits that are still continuing. However, these benefits also are set to expire soon. Let’s take a look at when these benefits are set to expire:
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Those with 401(k), 403(b) or individual retirement account can withdraw a coronavirus-related distribution of up to $100,000 without incurring the usual 10% early distribution penalty until the end of this year.
Those who still owe taxes on the withdrawal can spread the payment out over a period of up to three years. Also, those with 401(k) loan payments due between March 27, 2020 and the end of the year can make the payment next year. Interest, however, will continue to accrue.
The federal unemployment benefit offered by the CARES Act ended in July. However, self-employed, independent contractors and gig economy workers will continue to get state benefits till the end of the year. Many state benefits will end around the end of the year, depending on when a person filed for unemployment benefits.
Eviction ban, mortgage relief and student loan forbearance
Following the order from the Centers for Disease Control and Prevention, residential evictions for most tenants are banned until the end of the year. Those applying for this benefit must be able to prove that they are unable to pay rent because of the coronavirus pandemic.
Also, they need to show that they made every effort to apply for other government housing benefits, such as the assistance program offered by states. Such people need to apply for the relief by filing this CDC form.
Those with a federally-backed loan can request a six-month deferral on payments, or can also lower their payments for six months. The CARES Act didn’t specify how long this benefit would be available. It is believed that it would be available as long as the pandemic lasts, or we could say, at least until the end of the year.
Moreover, the mortgages that are backed by Fannie Mae, Freddie Mac, the FHA, the USDA and the VA are automatically under the eviction moratorium until at least the end of the year.
Student loan forbearance
Those with federal student loans have their payments automatically deferred until January 2021. For the private student loan borrowers, they will have to talk to their lender to know how long (if at all) they could defer their payment.
So, almost all benefits will expire at the end of the year. This means, lawmakers have about two months to come up with the next relief package.