CARES Act Mailing

The Coronavirus Aid, Relief and Economic Security Act, or the CARES Act, waives the annual Required Minimum Distributions on certain tax-qualified annuities and retirement accounts for calendar year 2020. The waiver benefits tax-qualified account owners because they will not be forced to deplete their retirement accounts under adverse market conditions.

We recently sent out letters to clients that are RMD eligible about the legislative changes. They were customized for each client’s situation, describing these distribution options:

1. Receive their 2020 RMD.
2. Waive the payment for calendar year 2020. If your client has a scheduled RMD payment for 2020 and wish to discontinue, they simply need to sign the letter we sent to them and return it to us.
3. Return the 2020 distribution payment within 60 days from the date the funds were withdrawn. Funds will be reapplied to their annuity contract.*

If clients have not yet taken their 2019 RMD or if they took their 2019 RMD in calendar year 2020, the options above are also available.

In 2021, we will restart their automatic RMD payment in the month previously designated. If they do not want us to set up an automatic RMD, or wish to change the date for the 2021 RMD, your client will need to contact our Annuity Services team at 800.247.6888.

*Applies to annuity contract owners only. Anticipated IRS guidance may relax the 60-day limitation.