IRI PRAISES RETIREMENT PROVISIONS IN HEROES ACT

Posted on May 15, 2020

Urges Congress to Consider Additional Measures to Help America’s Retirement Savers

IRI Communication to House of Representatives

WASHINGTON, D.C. – The Insured Retirement Institute (IRI) praised congressional efforts to include retirement security provisions in the HEROES Act, a measure to provide additional COVID19 pandemic relief to Americans, businesses and states. The House of Representatives is expected to vote on the measure today.

“We thank Congress for its leadership in continuing to pursue measures to help strengthen retirement security for millions of Americans as our nation recovers from the pandemic,” said Paul Richman, IRI chief government and political affairs officer.  “IRI welcomes the opportunity to work with Members of Congress to advance these retirement security proposals.”

The measures will grant a waiver to individuals who took a required minimum distribution (RMD) from their retirement accounts in 2019 and 2020 and permit the amounts of those distributions to be rolled back into a retirement plan or IRA without any penalties, if done by November 30, 2020. 

In an email communication sent to all members of the U.S. House of Representatives, IRI said that the enactment of these measures will help retirement savers save more today by keeping their tax-deferred retirement savings longer.

“It will give those who were required to take the distributions an opportunity to try to recoup some of the losses incurred because of the volatility of the stock market during the COVID-19 crisis” Richman wrote. “It is especially important for those retirement savers who are living longer and are close to retirement who, if not given this relief, may need to work even longer to recoup the losses incurred due to no fault of their own.”

IRI has put forward a 5-point plan to help American retirement savers ensure that their long-term retirement security does not become another victim of the pandemic. The plan has two objectives:  to help Americans save more by keeping their tax-deferred savings longer and to strengthen financial security for tomorrow by offering more ways to save when Americans return to work.

IRI’s plan is supported by the National Association of Insurance and Financial Advisors (NAIFA), the National Association for Fixed Annuities (NAFA), AALU/GAMA, the ERISA Industry Committee (ERIC) and the National Association of Independent Life Brokerage Agencies (NAILBA). The organizations expressed their support for the plan in a recent letter sent to all Members of Congress.

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Contact: Dan Zielinski