2019 IRA Contribution Deadlines and 2020 RMD Updates
It has been a few weeks since our last communication, so I wanted to update you on recent legislation (the SECURE and CARES Act) and how it applies to your accounts at Pension Fund. Also, we will continue with our decentralized staffing approach through May 18, 2020. We remain committed to providing a 5-star customer experience.
Pension Fund is actively engaged in the federal legislative process through the Church Alliance. The Church Alliance is comprised of more than 40 retirement organizations focused on the rights of church workers, legislative matters related to Church Benefit Plans, and other critical issues such as fighting to keep the housing allowance and defeating the church parking lot tax in 2018. Pension Fund continues to monitor and provide resources related to COVID-19 federal legislation. Below are a few changes specific to the SECURE and CARES Acts of which you need to be aware:
Traditional IRA Contributions
Each year, eligible taxpayers can contribute to a Traditional IRA as a prior year contribution for tax and IRS contribution limits purposes, through April 15. This year, by extending the tax filing and payment deadline to July 15, the IRA contribution deadline is extended as well. Similarly, the IRS-required 5498 (which you receive a copy of for informational purposes only) will have a delayed mailing date as well.
**Any contributions made to an established account must be marked for 2019 if you intend to make a prior year contribution between now and July 15, 2020.**
If you are interested in opening an IRA with Pension Fund, please contact your Area Director.
Required Minimum Distributions (RMDs)
RMDs are suspended for 2020. So, what does this mean if you are over the age of 72 or turning 72 this year and no longer working? If you are receiving a monthly distribution from a Tax-Deferred Retirement Account (TDRA) or an Individual Retirement Account (IRA), we will continue to send these to you. You must notify us in writing if you wish to suspend these monthly transactions by April 20 (or the 20th of any following month). Otherwise, we will continue to send the monthly payments. We cannot refund those distributions which have already been made.
If you have authorized a Qualified Charitable Distribution (QCD) for 2020 from an IRA, we will pay the QCD, unless you notify us in writing to suspend your QCD for 2020. If you receive the one-time, semi-annual or quarterly RMD, these are suspended for 2020. We will mail you a letter in June, informing you of the amount you would have been required to take and a form that you must return to us, if you still want to receive the November 2020 payment. We will continue to use your prior year tax elections, which you’ll have the opportunity to change.
The reason for suspending RMDs is Congress was concerned about forcing investors to take money from accounts that have been negatively impacted by the market downturn. Of course, as a member of Pension Fund, your account balance has grown during this time and not experienced any loss in market value.
We recognize and appreciate that many of you make gifts to Ministerial Relief and Assistance (MRA) from your November RMDs. Our development staff will be reaching out over the next couple of months to discuss your interest in supporting MRA in 2020. I will be discussing this topic further on our April 30 member call. You can join the call (up to 15 minutes prior to the start time) by dialing 844-767-5679. When prompted, enter the access code 5273993. The AT&T Operator will ask for your name before placing you in the call. The identical calls are at 11:00 a.m. and 7:00 p.m. EST.
As we continue to ride the roller coaster market in the days ahead there will be highs, lows, run-ups, and quick corrections. As David Stone, Chief Investment Officer, reminds us all, “These are the days for which we were built and when we truly shine.” Together, my friend, your retirement, my retirement, is indeed, Strong, Smart, and Secure.
Rev. Dr. Todd A. Adams, President and CEO