Letters were emailed on Sunday, March 22, to Senate Majority Leader Mitch McConnell and Speaker of the House Nancy Pelosi requesting that the next Coronavirus economic stimulus include a 2020 waiver for Required Minimum Distributions (RMDs) for Individual Retirement Accounts (IRAs) and 401(k)s.
Copies of my letters were also emailed to the Chairmen and Ranking Members of the Senate Finance Committee and the House Ways and Means Committee plus Wendell Priumus, Senior Healthcare and Budget Policy Adviser to Speaker Nancy Pelosi, who is familiar with the NRLN from meetings during our two 2018 Fly-Ins to Washington, DC.
If you are age 72 or older and have an IRA and/or 401(k), you know RMDs are based on the value of IRAs and 401(k)s as of December 31, 2019. My letters pointed out that at the end of last year, the Dow Jones Industrial Average closed at 28,462.14, the S&P 500 closed at 3,221.29, and
the Nasdaq Composite Index closed at 8,945.99. On Friday, March 20, 2020, the Dow Jones Industrial Average closed at 19,173.98; the S&P 500 closed at 2,304.92, and the Nasdaq Composite Index closed at 6,879.52.
The Wall Street week that ended March 20, 2020 was the market’s worst week since the financial crisis of 2008. Taking an RMD now would be a financial disaster and later in the year will most likely be a significant loss for anyone, especially retirees invested in the market to serve as much needed income.
I told Majority Leader McConnell and Speaker Pelosi that our nation’s seniors who are facing the threats of the Coronavirus could use some good news in learning that RMDs will be waived in 2020. I requested if they do not consider the economic stimulus plan legislation the suitable place for the RMD waiver, the NRLN looks to their leadership to make in happen by some other means. Should Congress fail to provide the RMD waiver, the NRLN will ask President Trump to issue an executive order or instruct Treasury Secretary Mnuchin to take action. If necessary, an NRLN Action Alert will be issued for you to write to your members of Congress.
Bill Kadereit, President
National Retiree Legislative Network