News You Can Use

Markets react to rising Covid cases, and economists mull a 'work-from-home' tax: The news and your money

The market reacts to Covid-19 cases rising and retirees will not have RMDs this year.


The market reacts to pandemic news, a work-from-home tax could stimulate the economy, and retirees will not have to make mandatory withdrawals this year. Here's how the headlines could affect your money.

Market moves on pandemic news 

The major indexes fell Thursday on news of rising coronavirus cases throughout the country. Traders worried that the surge could hurt the economy. But the market rose Friday morning as traders bet on stocks that would benefit from an effective vaccine. (At least one could, hopefully, be available to Americans in the spring.)

A "work-from-home" tax could raise $48 billion

A 5% tax on Americans who continue to work remotely after the pandemic is controlled could bolster the economy, according to a new study by Deutsche Bank

Americans who work remotely are spending less on commuting, lunches, and business attire, but are earning the same salaries they did before the pandemic. So they could be charged a tax to offset some of that lost spending, the study argues.

Since 60% of workers now working remotely full time say they'd like to keep working from home even after offices reopen, according to the study, the tax could infuse close to $50 billion a year into the economy and subsidize the wages of low-income Americans who can't telecommute.  

As of August, 24% of Americans worked remotely every day, according to the Federal Reserve Bank of Dallas

Retirees don't have to deal with required minimum distributions this year 

At year's end, many older investors rush to withdraw their required minimum distributions (RMD). This year, they don't have to. Thanks to the CARES Act, Americans will not have to make mandatory withdrawals from their retirement savings accounts, including their 401(k) plans and IRAs. 

Words you've heard: RMD

RMD, or required minimum distribution, refers to the amount of money that must be withdrawn each year from certain retirement plans, including traditional IRAs and 401(k)s, so as not to incur a penalty. You may withdraw more than the necessary amount, but not less.

Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.

More from Grow:

acorns+cnbcacorns cnbc

Join Acorns


About Us

Learn More

Follow Us

All investments involve risk, including loss of principal. The contents presented herein are provided for general investment education and informational purposes only and do not constitute an offer to sell or a solicitation to buy any specific securities or engage in any particular investment strategy. Acorns is not engaged in rendering any tax, legal, or accounting advice. Please consult with a qualified professional for this type of advice.

Any references to past performance, regarding financial markets or otherwise, do not indicate or guarantee future results. Forward-looking statements, including without limitations investment outcomes and projections, are hypothetical and educational in nature. The results of any hypothetical projections can and may differ from actual investment results had the strategies been deployed in actual securities accounts. It is not possible to invest directly in an index.

Advisory services offered by Acorns Advisers, LLC (“Acorns Advisers”), an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”). Brokerage and custody services are provided to clients of Acorns Advisers by Acorns Securities, LLC (“Acorns Securities”), a broker-dealer registered with the SEC and a member of the Financial Industry Regulatory Authority, Inc. (“FINRA”) and the Securities Investor Protection Corporation (“SIPC”). Acorns Pay, LLC (“Acorns Pay”) manages Acorns’s demand deposit and other banking products in partnership with Lincoln Savings Bank, a bank chartered under the laws of Iowa and member FDIC. Acorns Advisers, Acorns Securities, and Acorns Pay are subsidiaries of Acorns Grow Incorporated (collectively “Acorns”). “Acorns,” the Acorns logo and “Invest the Change” are registered trademarks of Acorns Grow Incorporated. Copyright © 2021 Acorns and/or its affiliates.

NBCUniversal and Comcast Ventures are investors in Acorns Grow Incorporated.