CARES Act Mailing

April 30, 2020

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 Return the 2020 distribution payment within 60 days from the date the funds were withdrawn.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.

 

More About Producer Advisories
Many clients count on receiving their annuity payments on specific dates so they can pay bills and meet day-to-day living costs. Electronic Funds Transfer is the best way to ensure payments on time, every time.
Please review this recent compliance alert: New Hampshire INS 305, Suitability of Individual Annuity Sales Recommendations.
We’re always looking to improve the customer experience. Thanks to your feedback, we’re rolling out new options for annual interest payments. See how these new features work.
We mailed IRS Form 1099-R in February to clients who took a distribution last year. You can view and download 2023 and prior year tax forms on the Annuity Portal.
Required Minimum Distribution notifications were mailed out at the end of January. Here’s the rundown on who we sent them to and what to expect.
We’re sending out IRS Form 1099-R in January. We’ll also post them on the Annuity Portal at that time. Take a second to mark your calendars and remind your clients.
Please review this recent compliance alert: Florida House Bill 1185, Suitability of Individual Annuity Sales Recommendations.