AMAC Action's Response / Coronavirus

Tell Congress to Suspend Required Minimum Distributions

Atlas shrugged real life lessons learnedSeniors over age 72 are required to withdraw funds from traditional IRAs based on account values and life expectancy. These Required Minimum Distributions (RMDs) are based on the account value at the end of the previous year, with the recent temporary downturn in the stock market this will force many seniors to sell more shares to cover the RMD. This decreases the future value of their IRAs and hurts their long-term savings.

During the great recession Congress temporarily suspended RMDs and should do so again for 2020 and 2021. Any senior needing to pull from their savings will still be able to do so, but not be required to. Tell your elected officials today to suspend these RMDs!

Contact Your Elected Official


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Barb
2 years ago

The amount of our RMD is based on the value of our IRAs at the end of 2019….when the market was really high. Congress should suspend RMDs for 2020 to give our accounts time to recover a little. Please include all retirees who are required to take RMDs, not just those over 72.

Stephen D
2 years ago

Why limit it to seniors over age 72?! What about those under 72 but over 70-1/2 that had to start taking RMD’s before the SECURE Act?

BruceM
2 years ago

Suspending RMDs will help seniors who do not need the distribution for household income. It will be of no benefit to those who are already withdrawing at least the amount of the RMD to live on

Sandra Gawinski
2 years ago

I fully agree!

no-mo-libs
2 years ago

In addition of suspending the RMD for a period of time, it makes sense to cut income rates on RMDs – say a 50% tax rate cut irrespective of the size of the RMD, I.e, only one half of the RMD is taxable, but for a limited period – say 5 years from when the coronavirus restrictions are lifted. Non-RMD income to retirees (pensions/bank interest/dividends) will continue at the current rates.

MARK S FLECK
2 years ago

You need to correct your Title box for sending the email to our officials . It needs to be either free form or add all of the appropriate abbreviations for the military ranks. SMSgt = Senior Master Sergeant (E-8 – USAF)

Ellen
2 years ago

I have to laugh and shake my head in disbelief when you suggest contacting our representatives. I live in California, enough said.

Ang
2 years ago
Reply to  Ellen

LOL! I’m right there with you.

JOSEPH KUTINA
2 years ago
Reply to  Ang

HEY, INVITING YOU BOTH TO THE BUCKEYE STATE..

Michelle
2 years ago

I think Congress has suspend far too many things already.
What we need is more truth, less media hysteria, more freedom, less restrictions.

Centurion
2 years ago

To AMAC: if you think restricting the way full names are entered in your petition is going to get people to sign your petition, you better think again. I will not sign due to your restrictions.

EJcouture
2 years ago

I believe it is already a 5% minimum at age 72 if not already withdrawing. Think they should just leave things alone, if taking monthly draw will probably have little effect if market recovers in 6 months. any time government starts messing with something they usually mess it up.

Pamela Woods
2 years ago

I have a 403b and receive a stipend each month. I’m not “allowed” to take any more than designated.

Enuf Said
2 years ago

If you are 72 and have the majority of your retirement funding in the market– then you took a chance and as of right now –HAVE LOST– the market will recover and with the funds in cash NOW–will probably very quickly. The government’s attention to shoring up the economy should encourage this recovery and allow these same SENIORS the opportunity of their lives to accumulate market wealth.

Fred
2 years ago

Too early to do this.

Timothy Hughes
2 years ago

I don’t think that including the final paragraph that begins with: “Additionally, the law is also inequitable in its application, RMDs are not required for Roth IRAs” is a very wise idea; because tax-hungry politicians will then “fix the inequity” by adding RMD requirements to our only escape vehicle, the Roth IRA. Please don’t ruin that!

Gloria L. White
2 years ago
Reply to  Timothy Hughes

Agree 100%.

CHARLES SILA
2 years ago
Reply to  Timothy Hughes

Politicians see only two options. A surplus mus be spent to buy votes. A deficit must be blamed on someone else and covered with higher taxes supposedly levied on those who caused or benefited from the deficit.

R. Orstad
2 years ago

I took my RMD at the beginning of the year. That way I can use the $$ as needed for expenses. When the stock market recovers and it will, you may want to think about doing that. One never knows what is going to happen. Pray that this will pass quickly. God bless.

Ron
2 years ago

A lot of people need to withdraw a certain amount anyway for living expenses. I believe it would be better to make the RMD non taxable for the next couple of years. Then those that don’t need the money can reinvest it in a non IRA type account

S T
2 years ago

I guess it’s a personal choice. I do think there should be a required distribution. Maybe it should be a percentage. I don’t know how you force someone to take out cash from failed stocks. But the retirement should be for the senior to live on, not a savings account for their heirs. They apparently invested it as retirement not previously taxed. A savings or trust for beneficiaries should have been figured in their plans differently.

Ron S
2 years ago
Reply to  S T

How does suspending the IRA Minimum Required DISTRIBUTION help seniors? If funds are needed, they will be withdrawn anyway. If funds are not needed now but you need to withdraw the RMD, take the RMD and put it into investments.
What is the point behind using this stock market decline as a reason to suspend the RMD?

David
2 years ago

I was dropped out after writing my comments and never received any confirmation that my submission was accepted. Why and what next.

Karen
2 years ago
Reply to  David

My comments disappeared also and never came back.

Mark
2 years ago

Many will need to sell investments in this crisis. With markets so low, it is time to raise the capital loss limit from $3,000 per household (set in 1978) to an inflation adjusted amount of $12,000. Please tell congress to include this in the stimulus bill.

David
2 years ago
Reply to  Mark

I even added the fact that they have taken 2.5 trillion out of our trust. And asked how they can rob a trust. A

trust is not to be taken by thieves. That is the peoples money that they took out of our pay checks.

Richard
2 years ago
Reply to  Mark

Excellent point!

Enuf Said
2 years ago
Reply to  Mark

I agree totally -This should have been done back in 2000 when the market was tanking–$3000 per household per year is an insult if a family lost a $100,000 or more!!

Richard C. Rens
2 years ago

I agree that the required withdrawal from IRA’s should be suspended for 2020 at least. It is not tax a reduction or savings, those taxes will still be paid, a one year deferral needed during the stock price
plunge.

Ron S
2 years ago

If the funds are needed, take them out of the IRA. If they are not needed now, some of the RMD funds can be used to pay the tax on them, leaving most of the funds for other investments. Again, how does temporarily removing the RMD help seniors now?

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