Education

Secure and Cares Act Info

Recently, two pieces of legislation were signed into law that may have an impact on your personal, business and/or retirement financial planning.  Please see the highlights of each act below.

SECURE ACT HIGHLIGHTS

The Secure Act was signed into law on December 20, 2019 and includes reforms that will be impactful and beneficial for Americans who are saving for retirement.  The legislation includes policy changes to defined contribution plans (such as 401(k)s), defined benefit pension plans, individual retirement accounts (IRAs), and 529 college savings accounts. Most provisions in the law went into effect on January 1, 2020.

As it relates to your retirement planning situation, here are some key provisions of the Secure Act:

Required minimum distributions:  RMDs now begin at age 72 for individuals who turn 70½ in the calendar year 2020. If you turned age 70½ in 2019 and have already begun taking your RMDs, you should generally continue to take your RMDs.  If you are turning 70½ in 2020 and had planned on taking an RMD, you may want to work with your tax advisor to determine next steps for your withdrawal plans.

IRA contribution age:  Under the act, you can continue to contribute to your traditional IRA past age 70½ as long as you are still working.  That means the rules for traditional IRAs will align more closely with 401(k) plans and Roth IRAs. 

Beneficiary IRA distributions:  If you inherit an IRA or 401(k), previously you could stretch the distributions from the inherited qualified plan over your single life expectancy.  However, the Secure Act has changed this to require many beneficiaries to withdraw assets from an inherited IRA or 401(k) plan within 10 years following the death of the account holder.

Qualified distributions:  The law now permits a retirement account holder the option to withdraw a "qualified birth or adoption distribution" up to $5,000 from their defined contribution plan (401(k) or IRA).  The normal 10% early withdrawal penalty is not applicable to these types of withdrawals and you can choose to repay them as a rollover contribution into an applicable defined qualified plan.

We encourage you to work with your financial investment advisor or tax advisor to determine how the legislation and policy changes could impact your retirement planning objectives.

CARES ACT HIGHLIGHTS

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020 and has key provisions which are intended to have a positive impact for Americans. The $2+ trillion emergency fiscal stimulus package is intended to mitigate some of the economic effects of dealing with COVID-19.

As it relates to your personal financial situation, here are some key impactful provisions of the CARES Act:

Direct payments: Americans who pay taxes will receive a one-time direct deposit of up to $1,200, and married couples will receive $2,400, plus an additional $500 per child. The payments will be available for incomes up to $75,000 for individuals and $150,000 for married couples.

Use of retirement funds: The bill waives the 10% early withdrawal penalty for distributions up to $100,000 for coronavirus-related purposes, retroactive to January 1, 2020. Withdrawals are still taxed, but taxes are spread over three years, or the taxpayer has the three-year period to roll it back over.

401(k) Loans: The loan limit is increased from $50,000 to $100,000

RMDs suspended: Required Minimum Distributions from IRAs and 401(k) plans (at age 72) are suspended.  Investors who have already taken an RMD for 2020 have options that may include returning the amount or rolling it over, up to August 31, 2020, as long as the distribution was not made from a beneficiary IRA.

Charity. There is a new provision that provides an above-the-line deduction for charitable contributions, plus, the limits on charitable contributions are changed.

Expanded unemployment benefits: Unlimited funding to provide workers laid off due to COVID-19 an additional $600 a week, in addition to state benefits for up to four months. This includes relief for self-employed individuals, furloughed employees and gig economy workers who have lost work during the pandemic.

Small business relief: $350 billion is being dedicated to preventing layoffs and business closures while workers have to stay home during the outbreak. Companies with 500 employees or fewer that maintain their payroll during coronavirus can receive up to 8 weeks of cash-flow assistance. If employers maintain payroll, the portion of the loans used for covered payroll costs, interest on mortgage obligations, rent, and utilities would be forgiven.

Coronavirus testing: All testing and potential vaccines for COVID-19 will be covered at no cost to patients.

Preventing Phone Scams

When it comes to preventing phone scams and avoiding fraud you can never be too careful. Check out the article below from the Federal Trade Commission on phone scams and how to avoid them. Please remember that Marion County Bank will never call you and ask for your card information or

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EIP Debit Card Information

Recently, a third round of payments went out to those who have yet to receive a stimulus payment as a result of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). These payments were mailed out in the form of Economic Impact Payment debit cards (EIP Card) with the recipent's name on the card. The card will arrive in a plain envelope from "Money Network Cardholder Services".

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National Data Privacy Day

January 28 is Data Privacy Day!  This day is an international effort to provide online privacy education and increase date protection awareness.  What can you do to make protecting your data?

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SHAZAM Privileged Status

We are privileged to offer you surcharge-free ATM access through the SHAZAM network. Just use any one of the over 3,000 ATMs across the country which carries the Privileged Status logo and access your money surcharge-free.

You can locate and get directions to Privileged Status ATMs by clicking on the Privileged Status ATM locator HERE.

With Privileged Status, not only will your transactions be FREE, but you'll have access to FREE ATMs across the country. Now, that's a privilege!

Home$tart - $7500 grant program

Home$tart is a down payment and closing cost assistance program offered by the Federal Home Loan Bank (FHLB) Des Moines to qualifying home buyers through Marion County Bank.

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Spring Break Travel Tips

As you make plans to travel over spreak break, don't forget to consider your financial security while you're away.  No one wants to be caught off guard while they're traveling. Check out our financial security travel tips as you plan your spring break getaway.

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Free Homebuying Workshop

Thinking of buying a home? Join our home loan experts, Diane Roose and Ryan Vos, for a FREE homebuying workshop. Whether you are buying your first home, downsizing, or currently renting, our homebuying workshop will discuss topics to help you in your homebuying process.

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Organize Your Finances

Is one of your New Year’s Resolutions to get more organized? A great place to start is on your personal finances. By getting your bills and statements in order, you’ll be less likely to miss payment deadlines, accrue late fees and feel overwhelmed by financial tasks.

If you’re ready to get your financial life organized, try these simple tips:

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Budgeting Tips for the Holidays

Shopping for the holidays can be a stressful experience, but it doesn’t have to be. Planning ahead can help make sure that you don’t overextend yourself when shopping for loved ones. Marion County Bank recommends following these seven steps.

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Social Security Seminar

Navigating social security can be challenging! The financial advisors at Main Street Advisory Group want to help you as you near this transition and will be hosting an informational seminar on how to get the most from social security.

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Receive fraud alerts via text

Keeping your account safe and secure is a high priority! We've now added Text Fraud Alerts as part of our debit card protection program.

You'll now receive text alerts when suspicious activity is detected on your Marion County Bank debit card.

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Free Credit Freezes

Free credit freezes and year-long fraud alerts are here, starting September 21st, thanks to a new federal law. Here’s what you should know courtesy of the Federal Trade Commission:

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Iowa's Tax Free Shopping Weekend

Iowa’s tax free shopping weekend is August 3 & 4. Use your Marion County Bank Debit Card and support your favorite local school while doing your back-to-school shopping. To date, we have donated $168,607.77 through our Report Card program!

Learn more about Report Card program and let us support your favorite school each time you swipe your MCB Debit Card.

Tech Support Scams

There has been an uptick in tech support scams reported to us in the Pella area.  Know how to spot the signs of this scam with help from this article by the Federal Trade Commission.

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Homebuying Myths vs Facts

If you’re in the market to buy a home, you may have a few questions – and a few misconceptions – about how financing a home works.  Here are five common myths about buying and financing a home that we have debunked to help educate you on your homebuying journey.

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Financial Summer Travel Tips

While preparing to travel this summer, there are a lot of things to consider. One of which is your financial security while you are away. Scams often happen when and where you least expect it. Check out our financial security travel tips as you plan your summer vacation.

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2018 Senior Scholarships

Since 1977, Marion County Bank has awarded college scholarships to local graduating seniors.  When the Dollars for Scholars program originated, we were glad to merge our program into theirs and become part of their program.  Marion County Bank awards ten $500 scholarships to students of our local high schools. This year’s recipients are:

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Over $168,000 donated!

A total of 3,464 Marion County Bank debit cards have earned a $168,607.77 donation to local schools through the life of the Report Card program.  The Report Card empowers debit card customers to support one of 13 local schools. 

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A Free Workshop for Business Owners

Business owners, we invite you to join us at our free business seminar "Built to Sell, 8 Things that Drive the Value of Your Company."

You may not be ready to sell your business. You may not have even thought about selling your business. It doesn't matter. What matters is that you are creating a business that's valuable (in other words, Sellable).

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"Free" offers and what to look for

You’ve heard it said, “The best things in life are free.”  But the “free” offers on the internet, television and phone are rarely that.  These “free” offers often require you to give your debit or credit card information to pay for shipping, future products, or service costs.  Many times the fees are charged after an initial trial period that requires you to end the service.

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Operating Systems Updates

Simply put, computer operating system updates whether big or small are important. Much like changing the oil in your car, brushing your teeth daily or going to a doctor for annual checkups, updates are necessary. Computers, phones, tablets and the software they house require regular updates to ensure they continue to run safely, efficiently and securely.

In addition, the Marion County Bank Internet Banking site requires that your computer be enabled with Transport Layer Security (TLS) 1.2 functionality to allow our Internet Banking site to work properly in a safe, secure environment.   Starting April 9, 2018, users of Marion County Bank Internet Banking may receive a disruption of logging in to Internet Banking if their computer's operating system is out of date or website browser does not have TLS 1.2 enabled. 

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Save for your First Home

A First-Time Homebuyer Savings Account (FTHSA) is a new type of savings account passed by the Iowa legislature to make purchasing a first home easier.  The law allows Iowans to make tax-deductible contributions into a First-Time Homebuyer Savings Account to be used for the purchase of a home.  Those who already own a home can open and contribute to an account for a designated first-time homebuyer and receive a tax deduction on Iowa state taxes too.

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Halftime Shootout a Slam Dunk!

Marion County Bank's halftime entertainment at the Pella vs. Pella Christian basketball games earns the schools a $4,650 donation from Marion County Bank.

Students from both schools collaborated together in the event to shoot layups, free throws, three pointers and half court shots to earn a donation for the schools from Marion County Bank.

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Equifax Data Breach: What to Do

Data Breach Image

Recently, Equifax, one of the three national consumer credit reporting agencies, announced a major data breach. This breach affects approximately 143 million Americans. This is what we know according to Equifax: the data breach occurred May – July 2017, and the information stolen includes consumers’ personally identifiable information, including names, Social Security numbers, dates of birth, addresses and, in some cases, driver’s license numbers.

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Same-day processing of ACH Debits

What’s new? Beginning September 15, 2017, the Federal Reserve will start processing same-day ACH (Automated Clearing House) debits.  This means that debit transactions between accounts will move faster for all consumer and business accounts.

What does this mean?  Today, credit transactions are posted multiple times throughout the day giving customers access to those funds sooner.  Now with Same Day ACH processing, the same will be true for ACH debits.  The ACH debits will post multiple times throughout the day also.

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