How did the CARES Act (The Coronavirus Aid, Relief, and Economic Security Act [the Act], passed by Congress and signed into law on March 27, 2020), impact Required Minimum Distributions (RMDs) from IRA’s, 401(k), 403(b), 457(b) and other defined contribution accounts?
by Jack Campbell, ARCRA Treasurer

The nearly 900-page law provided relief to individuals and businesses in various forms but there were some provisions focused on retirees and specifically on RMDs.  Recall that we provided some guidance on RMDs in December 2019 and January 2020 for tax planning purposes as retirees hit the age thresholds where distributions are required.  However, due to the unprecedented impact on the economy of the shutdown of large segments of businesses, and related stay-at-home orders due to the COVID-19 virus, specific relief was granted by the Act regarding RMDs in 2020.  Tax and legal professionals are offering guidance based on the Act but detailed rules from the IRS and Federal government may still be forthcoming.  Here is what they are saying now in terms of tax planning in 2020:-

What is the 2020 RMD relief?

Defined contribution plans like those noted in the headline can waive/suspend required minimum distributions in 2020 with no penalties imposed.  The waiver is for everyone, not just those who may be directly affected by COVID-19.  This provides flexibility in 2020 due to financial strains caused by the pandemic.

https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions  

What about those who have elected to take distributions automatically?

If you want to cease or change distributions already underway, you will have to contact your administrator or custodian to review what contractual arrangements exist to make changes.

Finally, there are more provisions that involve inherited IRAs and the application of the Act on those as well.  Please contact your financial or tax advisors to get the best advice that fits your particular situation before you take any action.

Read more the CARES Act and RMD here.

Review Your Athene Account

Many Red Cross retirees are receiving all or a portion of their retirement benefit from Athene. It just makes good sense to log on to your account at https://www.lifeatworkportal.com/Athene from time to time to review your information and familiarize yourself with the benefit info available to you. On the site, you can easily:

Recently, Athene CEO Grant Kvalheim wrote to all annuitants conveying, in part: “At Athene, your financial security is our top priority, and we are here to serve you whatever the coming weeks and months may bring. We maintain "A" ratings from A.M. Best, Standard & Poor's and Fitch Rating Services, and ended last year in the strongest financial position in our history.” The full letter is posted on your Athene accounts home page.

Some retirees are receiving all or a portion of their retirement benefit from John Hancock which does not offer online access to annuity accounts. Call a Client Services Representative at 800-624-5155 for any issues or requests related to your account.

A small number of retirees who began drawing benefits before June 1989 are receiving all or a portion of their benefit from Aetna. If you are in this category and would be willing to help us understand how annuitants can gain access to their account and receive customer service, get in touch at Admin@arcretireeassoc.org and we’ll share info with our members.