NAIFA’s advocacy team and grassroots army have been engaged from the beginning of conronavirus-related shutdowns with Congress, state legislatures, and federal and state regulators on proposals to provide economic relief and recovery assistance to individuals, families, and small businesses. We provided input to Congress as they shaped the first three phases of COVID-19 legislation, including the Paycheck Protection Program.
Most recently, NAIFA President Cammie Scott has sent a letter to House Select Revenue Measures Subcommittee urging Congress to provide retirement greater flexibility and exemptions from retirement plan rules so that they might more easily recover from damage to their retirement savings caused by the COVID-19 outbreak.
Previous legislation eased restrictions and allowed retirement savers who have lost their jobs, been furloughed, had their income reduced, or otherwise suffered economic impacts of COVID-19 to access their retirement savings without incurring penalties. This, along with market volatility, has impacted many Americans’ retirement-planning efforts.
Scott’s letter wholeheartedly endorses the Insured Retirement Institute’s five-point plan for helping retirement savers recover from COVID-19-related setbacks. The five points favor:
- Increasing the RMD age to 75
- Removing barriers limiting the ability to insure against outliving savings
- Expanding catch-up contributions to employees affected by COVD-19
- Expanding saving opportunities to non-profit, educational, and religious institutions
- Incentivizing small business participation in retirement savings by clarifying start-up credits