Highlights of the American Rescue Plan of 2021

After months of discussion and review, the American Rescue Plan Act of 2021 (Act) was signed into law by President Biden on March 11, 2021. In general, its provisions—which encompass more than 600 pages—become effective for 2021 with varying implementation dates. This Act builds on some of the earlier legislation. A note should be made that some provisions are permanent, while others will expire.

The following analysis seeks to capture the most salient provisions of the Act that may affect the financial planning and interests of clients. Many provisions make amendments to current Internal Revenue Code sections, while others create new code sections. It must be emphasized that the implementation of these provisions will be subject to further Treasury Regulations, which will afford greater clarity to many of the Act’s provisions.

Individuals

Employer Provisions

Retirement Provisions

COVID-19 Relief Special Treatment for SBA Grants and Loans 

The Act also includes recognition that there is no income tax recognition for both Targeted Economic Injury Disaster Loans and Revitalization Grants received from the Small Business Administration. 

This is a massive bill with many aspects and has no shortage of provisions for individuals and businesses at all levels. Naturally, you may have questions about the bill, and how it might affect you and your family. I welcome a chance to discuss this with you and answer any questions you may have.

Prepared by Stan Smiley, J.D. 

Senior Vice President, Advanced Planning Group 

Cetera Financial Group® 

The views are those of Stanley R. Smiley, J.D., senior vice president of the Advanced Planning Group, Cetera Financial Group®, and should not be construed as investment advice. The information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. 

Please note that neither Cetera Financial Group® nor any of its affiliated broker-dealer firms give legal or tax advice. For complete details, consult with an appropriate professional.