(Photo by Matthew Horwood/Getty Images)

The Coronavirus Aid, Relief, and Economic Security (CARES) Act rolled through Congress and was signed by President Trump this week. While most of the law is devoted to providing economic stimulus for businesses, a few provisions change some of the rules for retirement plans.

Required minimum distributions (RMDs) are suspended for 2020. All RMDs are suspended, including those for inherited IRAs as well as traditional IRAs of those over age 70. Think carefully about whether to take advantage of this suspension. If the effects of the pandemic dropped you into a lower tax bracket, it might make sense to take the RMD (and perhaps a bit more) out of the IRA this year while youre in a lower tax bracket.

If you already took the 2020 RMD, you will have to include it in gross income and pay taxes on it. But you might have some options. You have up to 60 days to return a distribution to an IRA or deposit it in another qualified retirement account without owing taxes on it. You also might convert the amount into a Roth IRA.

Since the tax return filing deadline for 2019 income tax returns was extended to July 15, the deadline for making a 2019 contribution to an IRA also is extended to July 15, 2020.

The 10% penalty for taking early distributions from qualified retirement plans, including IRAs and 401(k)s, is waived. The waiver applies to distributions taken between January 1, 2020 and December 31, 2020. Up to $100,000 of distributions can avoid the penalty.

Other rules related to retirement plan distributions are suspended or modified in the CARES Act. The mandatory 20% income tax withholding for rollover distributions is suspended during this period. In addition, income taxes on a coronavirus-related distribution can be paid over a three-year period. The individual also has up to three years to recontribute the amount to a plan or IRA. An in-service distribution from a qualified retirement plan also is permitted if it is coronavirus-related.

Retirement plan loan rules also are modified. The maximum loan amount is increased for loans that are made between the date of enactment of the CARES Act (March 27) and December 31, 2020. Normally the loan maximum is $50,000 or 50% of the vested account balance. During this period the maximum loan is doubled to the lower of $100,000 or 100% of the vested account balance. The due date for repayment of the loan is delayed one year.

To qualify for these IRA and retirement plan changes, a loan or distribution must be coronavirus-related. That means the individual, the individuals spouse or a dependent must have been diagnosed with COVID-19. Or the individual must experience adverse financial consequences as a result of being quarantined, furloughed, laid off or having work hours reduced due to COVID-19. Also eligible are individuals who were unable to work due to lack of child care as a result of COVID-19. An individual whose business was closed or had reduced operating hours as a result of COVID-19 also is eligible. A retirement plan administrator can rely on an individuals certification that he or she meets the requirements.

See the article here:
IRA And Retirement Plan Changes In The CARES Act - Forbes

The coronavirus pandemic has affected nearly every aspect of our society, fundamentally changing the way we currently live. It's also wreaked havoc on the economy, and there's a good chance you've watched your retirement investments take a nosedive in recent weeks.

For those who are still many years away from retirement, this shouldn't worry you too much. The stock market will always experience ups and downs, so although your retirement savings may be in rough shape now, they should bounce back on their own as long as you continue investing consistently.

However, if you're just a year or two away from retirement, you may need to adjust your plans. If your current savings aren't nearly as strong as you'd hoped they'd be by this point, you might have to delay retirement.

Image source: Getty Images.

Determining whether to postpone retirement can be a tough decision, but it comes down to how close you are to your desired retirement age and how much you have in savings.

If you planned to retire this year and your investments have taken a significant hit, you might have no choice but to delay retirement if you can't afford to live on the savings you have. But if you have quite a few years left before you plan to retire, you might be able to supercharge your savings during that time to get back on track and retire on schedule.

It can be challenging to plan for your senior years during a market downturn because nobody knows exactly how long it will be before the economy starts to improve and stocks start to bounce back. So if you're trying to figure out just how much you need to save now or exactly what age you'll be able to retire, there may not be an immediate answer.

Flexibility is key here, so try your best to ride out this storm and adjust your plans along the way. And there are a few things in particular you can do right now to make that task a little easier.

Regardless of whether you're close to retirement or it's still decades away, it's best tocontinue contributing to your retirement fund. It may feel like you're simply throwing money away when the market is in free fall, but now is actually a smart time to invest when stock prices are low. The stock market will improve over time, so focus on the long term more than the short term.

One thing you don't want to do right now is cash out your retirement fund.Cashing out may sound like a good idea when your investments plummet because you might think it will help salvage whatever money you have left. In reality, though, selling your investments when the stock market is at a low point will only hurt your savings in the long run. By liquidating now and then waiting until the economy improves to start investing again, you're missing out on valuable time to let your money grow.

Once the market starts to recover, it will be easier to gauge whether your savings are enough to be able to retire on time. If you find that your retirement fund isn't quite as robust as you hoped it would be, you'll either need to start stashing away more or push retirement back by a few years. But if the stock market is booming and your investments have grown quickly, you might be right on track for retirement.

If you decide to postpone retirement, working a few years longer has an additional benefit: You could collect larger Social Security checks. You can begin claiming Social Security as early as age 62, but for every month you wait past that age, you'll receive slightly bigger checks. So if you decide to delay retirement by a few years to pad your nest egg, you could also delay benefits, as well, to further boost your retirement income.

Retirement planning is never easy, but it's even more challenging during difficult economic times. While the future may be unpredictable, that doesn't mean you can't take steps to prepare the best you can. By continuing to save and being willing to be flexible with your retirement plans, you can set yourself up for an enjoyable retirement -- even if it's a few years later than you originally expected.

Continue reading here:
Here's What to Do If You Need to Postpone Retirement Due to Coronavirus - The Motley Fool

When it comes to retirement, you're well-served to remember the carpenter's rule: Measure twice, cut once. You don't want to claim your Social Security at age 62, for example, and then realize six months later you have to return to the workforce. Missteps like that can be costly.

As you approach retirement, it's wise to check and recheck your financial health -- but it's critical in this period of market volatility. Yes, your retirement savings balance is in flux. And yes, this market downturn, like all the rest, is temporary. But a review of where you stand today, outside of your savings balance, may inspire you to make different choices that'll benefit you tomorrow. If you hope to retire before 2025, here are six steps to measure your retirement readiness.

Image source: Getty Images.

View your estimated Social Security benefits by creating an account online at My Social Security. Once you log in, you'll see three estimates of your benefits, depending on when you claim:

If your estimated Social Securitybenefit is disappointing, take steps to increase it while you're still working. The benefit calculation relies on your average monthly income in your 35 highest-paid, income-earning years. Raise that average and you raise your benefit, too.

As with any average, you'd increase it by replacing lower values with higher ones. If your income is at or near its peak, continuing to work will naturally raise your average. Your salary this year, for example, replaces your lower salary of 35 years ago in the calculation. The only time this doesn't apply is if you've earned the Social Security income limit for 35 years straight. That income cap in 2020 is $137,700.

Quantifying your pension income is straightforward if you still have access to the pension administrator. Simply reach out to that administrator and ask about your expected benefits.

Things are trickier if you've lost track of your pension details. In that case, search the Pension Benefit Guaranty Corporation's unclaimed pensions database. Also look through your old employment paperwork, and call former employers' benefits departments and inquire about pension benefits.

Knowing your living expenses in detail is one of the most productive retirement planning steps you can take. That's because your living expenses ultimately determine how much money you need to retire. It is possible to retire as scheduled even when your portfolio is down 20% -- but you'd have to adjust your living expenses now and going forward to make that happen.

Start tracking your spending today. You can use an app like Clarity Money or Mint, or you can regularly download and review your bank transactions manually. The manual review may be more productive, because you have to put your eyes on each transaction to make sense of your spending. That exercise alone often reveals savings opportunities. You might realize you don't need the Friday morning latte or two separate streaming services. Or, when you see the auto-billed charge for your car insurance come through, you might be motivated to shop around for cheaper rates.

You may qualify for retiree benefits through your employer, a union, the military, or the VA. These benefits might include full extension of your healthcare coverage. Or you might get smaller perks, like discounts on hearing aids, glasses, or contacts. Meet with your benefits administrator at work and representatives at any other organizations to get the details. Every perk counts.

Healthcare is a wildcard for retirees. You should qualify for Medicare at age 65, but that coverage still leaves you with deductibles, copayments, and coinsurance. By some estimates, you'll spend nearly $300,000 in out-of-pocket medical expenses for you and your spouse in retirement.

If you do qualify for retiree healthcare, it is an option to keep that plan and apply for Medicare too. Typically, Medicare would function as your primary insurer and the other coverage would be secondary. You'll have to weigh potential savings against the cost of premiums for the group plan. See if your benefits administrator can help you with this analysis.

Funds saved in a Health Savings Account, or HSA, will also help you manage healthcare costs in retirement. To qualify for an HSA, you must have high-deductible health insurance. Specifically, that means your individual deductible is at least $1,400 or your family deductible is at least $2,800.

Contributions to your HSA are pre-tax, and withdrawals used for medical costs are tax-free. The HSA contribution limit in 2020 is $3,550 as an individual or $7,100 as a family. But if you're 55 or older, you can increase those limits by $1,000. Make those deposits today while you can; you can't make HSA contributions once you transition to Medicare.

Review your life insurance coverage and accumulated cash value in light of your current financial priorities. Accumulated cash value is an asset, and you could use it to bridge a savings shortfall. Your policy should allow you to borrow or directly withdraw that cash value. You could also surrender the policy and the insurer would pay out the accumulated cash value, less any surrender fees. You could even sell your life insurance through a life settlement company. Know that these strategies may have tax implications, so check with your accountant before proceeding.

On the other hand, you may want to protect the death benefit in your policy. In that case, keep paying your premiums and don't withdraw or borrow against your cash value. Pulling cash out of your life insurance generally reduces the death benefit immediately.

A 2025 retirement may still be within striking distance, despite the current stock market craziness. The only way to know is by measuring where you stand today. Go through this exercise and you may realize you're in better shape than you thought. If not, make adjustments and measure again. That's how to get where you need to be.

{{{ description }}}

The Motley Fool has a disclosure policy.

Excerpt from:
Retiring in the Next 5 Years? 6 Steps to Measure Your Retirement Readiness - The Motley Fool

BEND, Ore., March 31, 2020 /PRNewswire/ -- With a singular and enduring focus on providing the highest standard of care for its residents for the past 20-plus years, Sunshine Retirement Living, (www.sunshineret.com), a Bend, Oregon-based, family-owned premier senior housing company, is seeking to fill more than 100 open positions at several of its communities across the country. As the COVID-19 pandemic continues to spread, Sunshine Retirement Living has deployed a two-fold approach in order to have the most positive impact on their communities. Sunshine Retirement Living has: 1) heightened infection prevention protocols above and beyond CDC guidelines to help ensure the health and safety of its residents and existing employees; and 2) committed to focus on hiring people who have lost their jobs due to the pandemic. To that end, initial interviews will be conducted online or over the phone, and all candidates and new employees will undergo strict screenings as directed by the CDC and other leading health organizations and authorities to detect any sign of illness before entering any Sunshine community.

"Sunshine Retirement Living's mission has always been to exceed industry standards and that includes hiring the only the most caring and skilled team members, who are passionate about their roles and their positive impact on seniors' lives," said Luis Serrano, CEO, Sunshine Retirement Living. "To ensure that we continue to provide the highest standard of care and to ensure that our employees get the rest they need to stay healthy physically and mentally, we are immediately seeking to hire more than 100 employees across a wide range of positions. The top requirement for joining the Sunshine team is a commitment to enriching the lives of our residents each and every day."

In addition to several management positions, the company seeks: caregivers, wellness nurses (LPN and RN); cooks, sous chefs, prep cooks and dishwashers; concierges; housekeepers and maintenance coordinators; and CDL bus drivers. Those interested in learning more about the positions and the application process can visit https://www.sunshineretirementliving.com/careers/.

The majority of available positions are at the following communities:

About Sunshine Retirement LivingBased in Bend, Ore., Sunshine Retirement Living manages 32 retirement communities in 16 states, offering senior apartments, independent living, assisted living and memory care. A family-owned business with more than 20 years in the senior housing industry, Sunshine Retirement Living's mission is to be the preferred senior living provider offering value, choice and independence while promoting health and social interaction that exceeds residents' expectations and enriches the lives of both residents and staff. By providing meals, housekeeping, activities, transportation, utilities and in-house management staff, Sunshine Retirement Living continues to build an unparalleled community feeling in each property. For more information, visit http://www.SunshineRet.com or connect socially, @SunshineRetirementLiving.

SOURCE Sunshine Retirement Living

Home Page

See more here:
Sunshine Retirement Living Now Hiring at Senior Communities Across the United States - PRNewswire

The coronavirus crisis has punished the blameless across the world this year. That includes investors who did the supposed "right thing," by keeping a balanced portfolio to fund long-term gains, just as the experts advise.

As the stock-market cascaded to its recent lows this month, the traditional portfolio of 60% stocks and 40% bonds suffered a greater than 20% decline from its peak value, for only the fourth time since World War II.

At last Monday's low, this standard retirement allocation, as represented by the Vanguard Balanced Index Fund, was 22% off its peak Feb. 19 value driven mostly of course by the 30% tumble in equity indexes that bonds only partially buffered. In fact, near the worst of the stock sell-off bonds were not offsetting the losses by rallying, as everything but cash was liquidated.

Upon request, Ritholtz Wealth Management research director Michael Batnick went back in history to track each time the 60/40 portfolio had taken at least a 20% hit. Such a decline struck initially at only the following points since 1945 (using month-end data for 60% S&P 500 and 40% five-year Treasuries): August 1974, September 2002 and January 2009.

The fact that the 60/40 autopilot approach has only retreated by 20% on a monthly basis four times in 75 years is itself a testament to the smoothing effects of offsetting equity-fixed income interplay.

What happened next after the prior 20% setbacks? Those months were all within months of the trough of major bear markets, though in each case the ultimate low for the stock indexes was still to come.

Batnick calculates that in those three instances in 1974, 2002 and 2009, it took between 10 and 20 months for this portfolio to recover back to its peak level.

An investor who kept to the disciplined approach and rebalanced holdings back to the 60/40 asset split at the end of the month when a 20% decline was first registered would have been positioned for attractive returns in subsequent years.

In those three instances, the average annual total return from the 60/40 portfolio was close to 12% over the following five years. That's a healthy advantage over the very long-term average yearly return of around 9% for this asset allocation.

This is perhaps comforting, if not terribly surprising. Any investment discipline that triggers a move to take advantage of steep underperformance in one asset classes tends to be rewarded over time. And rebalancing after big declines in a blended-asset portfolio has generally been about buying nasty breaks in stock indexes.

On a more opportunistic, shorter-term basis, strategist Terry Gardner of C.J. Lawrence last week noted that simply buying the S&P 500 the last three times it's dropped 25% from a peak (1987, 2001 and 2008), as it did this month, has always led to positive returns over the next year even though in none of those instances did the minus-25% level represent the ultimate low for stocks. Those returns one year out were 20% after 1987, 2.5% after 2001 and 18% after 2008.

Are there reasons to be skeptical that holding fast to the 60/40 stance this time will not fare as well as in past decades? Some investment professionals have discussed for some time that the essential premise of the 60/40 mix has been challenged due to extremely low bond yields that leave far less room for bonds to appreciate in an economic slowdown or crisis, mitigating their value as ballast to stocks.

Goldman Sachs strategists last week sounded a cautious note on this front last week with regard to the present market skid. "In addition to the sharper-than-normal equity correction, diversication in 60/40 portfolios has been less good," the firm said. "With bond yields at all-time lows now and close to the effective lower bound, there is little space for most [developed-market] bonds to buffer equity drawdowns."

Stretching deeper into history, skeptics might note the 60/40 portfolio carried a 20% loss for longer stretches in the 1930s, when stocks stayed deep underwater during the entire Great Depression.

So perhaps the traditional asset mix will get less help over time from bond yields squeezing lower in tough times (barring a move to negative yields, which would create a whole other set of issues). Still, bonds can still serve the role as cushion against equity losses.

The entire issue of rebalancing is hardly just an academic issue. The impulse from pension funds and automated asset-allocation vehicles to shift hundreds of billions in assets from fixed-income to stocks was detailed by strategists across Wall Street and was at least one significant driver of the surge in the S&P 500 into Thursday's close.

The S&P 500 at its low point last week was underperforming the Barclays Aggregate Bond Index by some 30 percentage points year to date. Bespoke Investment Group notes that this effectively turned a 60/40 portfolio into a 55/45 mix, requiring one of the bigger rebalancing moves in years.

Of course, to the extent that this mechanical reallocation is timed to the quarter's end, it means one short-term tailwind for the rebound rally has just about abated, as the market bounce leaves the indexes less stretched and investors have celebrated fresh trillions of dollars in support from the Federal Reserve and Congress.

Strategist Tony Dwyer of Canaccord Genuity, who's been waiting for a retest of last week's low to get more aggressively positioned, noted Friday, "Over coming days, the market will not be as oversold, the pension rebalancing will be done, and the bulk of monetary and fiscal stimulus will have been announced."

While those factors could present a test of the immediate resilience of the market's attempted comeback, they don't much alter the case for long-term investors to take what the market has served up with its swift retrenchment this month.

Read the original post:
The traditional retirement portfolio of stocks and bonds is down 20% for only the fourth time since WWII - CNBC

COVID-19 Storm Lake school lunch

Mike Sullivan, assistant Storm Lake elementary principal, passes out a lunch Tuesday, March 17, 2020, at West Ninth Street Park in Storm Lake, Iowa. The Storm Lake Community School District started free distribution of breakfasts and lunches Monday to anyone under 18 to help feed youth who would otherwise be missing meals in the wake of the schools' closure over COVID-19 pandemic concerns. Lunchtime Solutions, the district's meal contractor, made 1,200 sack lunches for distribution Tuesday.

Kellie Anderson, principal of early childhood programs and special education director, passes out a lunch Tuesday, March 17, 2020, in a parking lot at an apartment complex in Storm Lake, Iowa. The Storm Lake Community School District started free distribution of breakfasts and lunches Monday to anyone under 18 to help feed youth who would otherwise be missing meals in the wake of the schools' closure over COVID-19 pandemic concerns. Lunchtime Solutions, the district's meal contractor, made 1,200 sack lunches for distribution Tuesday.

Mike Sullivan, assistant Storm Lake elementary principal, rings a triangle to draw attention while walking down a street in a northside neighborhood to give away lunches Tuesday, March 17, 2020, in Storm Lake, Iowa. The Storm Lake Community School District started free distribution of breakfasts and lunches Monday to anyone under 18 to help feed youth who would otherwise be missing meals in the wake of the schools' closure over COVID-19 pandemic concerns. Lunchtime Solutions, the district's meal contractor, made 1,200 sack lunches for distribution Tuesday.

Mike Sullivan, assistant Storm Lake elementary principal, left, and superintendent Stacey Cole, knock on a door at a home where children live while giving away lunches Tuesday, March 17, 2020, in Storm Lake, Iowa. The Storm Lake Community School District started free distribution of breakfasts and lunches Monday to anyone under 18 to help feed youth who would otherwise be missing meals in the wake of the schools' closure over COVID-19 pandemic concerns. Lunchtime Solutions, the district's meal contractor, made 1,200 sack lunches for distribution Tuesday.

Mike Sullivan, assistant Storm Lake elementary principal, left, and Kellie Anderson, principal of early childhood programs and special education director, right, stop a car carrying children to give them free lunches Tuesday, March 17, 2020, in Storm Lake, Iowa. The Storm Lake Community School District started free distribution of breakfasts and lunches Monday to anyone under 18 to help feed youth who would otherwise be missing meals in the wake of the schools' closure over COVID-19 pandemic concerns. Lunchtime Solutions, the district's meal contractor, made 1,200 sack lunches for distribution Tuesday.

Food service worker Ashley Keene passes bags of food through the window of a car driven by Erika Petersen Tuesday, March 17, 2020, at a drive-up lunch distribution at Storm Lake High School in Storm Lake, Iowa. The school district started free distribution of breakfasts and lunches Monday to anyone under 18 to help feed youth who would otherwise be missing meals in the wake of the schools' closure over COVID-19 pandemic concerns. Lunchtime Solutions, the district's meal contractor, made 1,200 sack lunches for distribution Tuesday.

Food service workers, from left, Ashley Keene, Barb Phillips, Amber Flores and Tina Hansen pass out lunches Tuesday, March 17, 2020, at a drive-up lunch distribution at Storm Lake High School in Storm Lake, Iowa. The school district started free distribution of breakfasts and lunches Monday to anyone under 18 to help feed youth who would otherwise be missing meals in the wake of the schools' closure over COVID-19 pandemic concerns. Lunchtime Solutions, the district's meal contractor, made 1,200 sack lunches for distribution Tuesday.

Storm Lake Community School District Superintendent Stacey Cole, waves to children walking down a street while passes out lunches Tuesday, March 17, 2020, in Storm Lake, Iowa. The school district started free distribution of breakfasts and lunches Monday to anyone under 18 to help feed youth who would otherwise be missing meals in the wake of the schools' closure over COVID-19 pandemic concerns. Lunchtime Solutions, the district's meal contractor, made 1,200 sack lunches for distribution Tuesday.

Food service worker Ashley Keene passes out a lunch Tuesday, March 17, 2020, at a drive-up lunch distribution at Storm Lake High School in Storm Lake, Iowa. The school district started free distribution of breakfasts and lunches Monday to anyone under 18 to help feed youth who would otherwise be missing meals in the wake of the schools' closure over COVID-19 pandemic concerns. Lunchtime Solutions, the district's meal contractor, made 1,200 sack lunches for distribution Tuesday.

Food service worker Tina Hansen keeps a tally of how many meals have been handed out Tuesday, March 17, 2020, at a drive-up lunch distribution at Storm Lake High School in Storm Lake, Iowa. The school district started free distribution of breakfasts and lunches Monday to anyone under 18 to help feed youth who would otherwise be missing meals in the wake of the schools' closure over COVID-19 pandemic concerns. Lunchtime Solutions, the district's meal contractor, made 1,200 sack lunches for distribution Tuesday.

Food service worker Ashley Keene hands bags of food to a motorist as she and Tina Hansen, left, and Barb Phillips work Tuesday, March 17, 2020, at a drive-up lunch distribution at Storm Lake High School in Storm Lake, Iowa. The school district started free distribution of breakfasts and lunches Monday to anyone under 18 to help feed youth who would otherwise be missing meals in the wake of the schools' closure over COVID-19 pandemic concerns. Lunchtime Solutions, the district's meal contractor, made 1,200 sack lunches for distribution Tuesday.

Mike Sullivan, assistant Storm Lake elementary principal, left facing camera, and Kellie Anderson, principal of early childhood programs and special education director, right, and superintendent Stacey Cole, far left, give away lunches in the middle of a Storm Lake street Tuesday, March 17, 2020, in Storm Lake, Iowa. The Storm Lake Community School District started free distribution of breakfasts and lunches Monday to anyone under 18 to help feed youth who would otherwise be missing meals in the wake of the schools' closure over COVID-19 pandemic concerns. Lunchtime Solutions, the district's meal contractor, made 1,200 sack lunches for distribution Tuesday.

Workers prepare lunches for distribution Tuesday, March 17, 2020, at Storm Lake High School in Storm Lake, Iowa. The Storm Lake Community School District started free distribution of breakfasts and lunches Monday to anyone under 18 to help feed youth who would otherwise be missing meals in the wake of the schools' closure over COVID-19 pandemic concerns. Lunchtime Solutions, the district's meal contractor, made 1,200 sack lunches for distribution Tuesday.

See the article here:
At Sioux City retirement communities, families visit at the window and bingo is played in the doorway - Sioux City Journal

UNITED STATES - MARCH 25: Senate Majority Leader Mitch McConnell, R-Ky., center, arrives to the ... [+] Capitol before speaking on the Senate floor about a coronavirus stimulus package on Wednesday, March 25, 2020. (Photo By Tom Williams/CQ-Roll Call, Inc via Getty Images)

The negotiating parties stayed up past their bedtime Tuesday night, announcing a deal. There were subsequent complaints about errors in the legislation. Finally, late Wednesday night, the Senate passed its economic stimulus and relief bill and sent it to the House.

Now the $2 trillion (yes, with a T) economic relief bills text has finally been released. For a run-down of the particulars of the bill as a whole, see the story here.

But Ive been keeping an eye on the retirement-related pieces.

For savers - section 2202

Individuals affected by the coronavirus will be permitted to take a withdrawal from their retirement accounts (IRAs, 401(k)s, etc.) of up to $100,000, without paying the usual early-withdrawal penalty. In addition, the sum withdrawn may be recontributed to a retirement account within three years, without being subject to the usual annual contribution caps. If its not repaid, the withdrawal will be taxed at ordinary income tax rates over a three-year period. Notably, the definition of eligibility for penalty free early withdrawals is rather expansive, encompassing anyone experiencing any economic effects due to the virus.

In addition, the limit on loans from retirement plans is increased from its existing $50,000 to $100,000 and the existing limitation that loans may not exceed half the vested account balance has been removed. Due dates for new loans or loans already outstanding are also to be extended by one year.

The legislation resembles prior iterations of disaster relief, most recently for individuals affected by the three 2017 hurricanes of Harvey, Irma, and Maria.

For retirees - section 2203

The legislation waives the required minimum distributions for IRAs and other individual retirement accounts for calendar year 2020.

For pension plans - sections 3607 and 3608

Readers will recall that earlier this week I featured the concerns of pension plan sponsors that, absent government action, they would face challenges with respect to quarterly pension plan contributions due as soon as April 15, at a time when they are facing challenges with cashflow and can ill-afford to direct money to pensions. This legislation relieves that worry by deferring those contributions to January 1, 2021, with interest. In addition, one component of existing funding rules is that plans with a funded status of less than 80% (based on the relevant government regulations) are unable to pay out lump sums to their participants. In order to prevent a low funded status calculation due to coronavirus economic impacts from triggering this restriction, plans would be able to use the last measurement prior to 2020 in place of their 2020 measurement. Finally, in the same manner as the Department of Labor previously had authority to postpone various sorts of deadlines for requirements in ERISA for cases of terrorism or war, the law grants them the same ability due to a public health emergency a change that doesnt have any immediate effect but enables the Department of Labor to invoke this ERISA clause to grant extensions, as they did, for example, in 2017 with the hurricanes and California wildfires.

Whats missing from the bill?

The House version of relief/stimulus was criticized for its grab-bag of provisions and inclusion of items on a wish list that were unrelated to the crisis at hand. Among these was the Butch Lewis Act that is, the Rehabilitation for Multiemployer Pensions, House-passed legislation that promised to solve the multiemployer crisis by means of 30 year loans in which only interest is paid for the first 29 years, and a final principal payment in year 30 is forgivable if the plan cant pay.

The House version also provided funding relief (or special treatment and exemptions from properly funding workers pensions, depending on your perspective) for community newspapers.

Im perfectly happy that these provisions were excluded.

But the House bill also included provisions for employer-sponsored pensions to help them in the medium-term: the ability to make up deficits caused by the market crash and the poor economy over fifteen rather than seven years, and boosts in the anticipated very-low discount rates companies would otherwise be obliged to use to calculate their liabilities (remember, the lower a discount rate is, the higher the liabilities, and those rates are at a historic low at the moment). To be sure, 95% of pension plans have a plan year that matches the calendar year, so that there is some time to be had for these plans, both in terms of future legislation and ability to see what the economy actually looks like some months from now, but others will need to measure their liabilities on dates as soon as April 1st.

What pension-related special treatment items remain?

One, that I can tell: a special benefit for the March of Dimes. This is Section 3609: Application of Cooperative and Small Employer Charity Pension Plan Rules to Certain Charitable Employers Whose Primary Exempt Purpose Is Providing Services With Respect to Mothers and Children.

As it happens, in 2014, various small charities and other similar employers were given exemptions from current pension plan funding requirements, and permitted to fund their pensions in a less-stringent manner. The March of Dimes did not fit the criteria for a designation as a cooperative or small employer charity pension plan but, back in November, a group of legislators introduced a bill to include them with new narrowly defined criteria (provides services with respect to mothers and children and conducts medical research . . . through grant-making and has been in existence since at least 1938). Why March of Dimes? Reporting from a year ago describes fundraising shortfalls, proliferation of competitor fundraising walks, and efforts to rebrand and refocus.

(Note that this is different from the exemptions for church plans; plans sponsored by churches/religious groups have a longstanding exemption from federal funding requirements but are likewise not protected by the federal government through the PBGC. These small charity plans are protected by the PBGC but are nonetheless subjected to more lenient funding rules.)

Was this worthwhile legislation that just wasnt able to pass on its own? As an actuary, Im not happy with it, but in the grand scheme of things, its small potatoes.

What about the payroll tax credit?

Yes, every time there are proposals to give tax relief in the form of payroll tax credits/cuts, there are people who get upset that this will damage Social Security. The logic is this: if the Trust Fund is not made whole by means of transfers from general federal funds, then Social Securitys funding suffers. And if the funds are replenished, this weakens the degree to which Social Security funding is separate and set-apart from the rest of the government operations. Heres the advocacy group Social Security Works:

The Republican plan would replace Social Securitys dedicated revenue with deficit-funded general revenue, but this is a trap. Once the pandemic is done, Republicans will undoubtedly use the general revenueto demand cuts to Social Security in the name of reining in entitlements.

The reality is that delivering benefits via a mechanism of payroll tax credits is not a nefarious scheme to weaken Social Security, but simply something thats logistically/administratively easy to do, or, at any rate, comparatively easier than other mechanisms for accomplishing the same purpose.

What next?

Fundamentally, there are too many unknowns to speculate. Will the pandemic and its economic effects turn out to be the equivalent of a particularly nasty recession? Will the effects be so different from a normal recession as to cause economic textbook rewrites? And how will that affect the world of retirement?

As always, youre invited to comment at JaneTheActuary.com!

Go here to read the rest:
A Guide To The Retirement-Related Provisions In The Senate Coronavirus Stimulus/Relief Bill - Forbes

A woman wearing a protective mask walks past the New York Stock Exchange on March 12, 2020. in New York City.

Pablo Monsalve | VIEWpress | Corbis via Getty Images

The recent market volatility may have you wondering just what to do with your retirement account.

You may be thinking of heading for the exit or perhaps you want to buy some stocks on sale.

While stocks rallied the third straight day on Thursday, they have yet to make up the steep losses from the coronavirus sell-off. The Dow Jones Industrial Average, S&P 500 and Nasdaq all entered Thursday's session down at least 24.9% from their respective all-time highs set last month.

Financial advisor Mitch Goldberg, president of ClientFirst Strategy in Melville, New York, said the last few days of reprieve have given investors time to think.

"When you are bombarded by a ton of information, it's difficult to make a decision," he said.

"It's only after you have time to contemplate what you've learned and how it relates to your own situation that you can really make a smart decision."

However, remember that it is normal to feel anxiety amid the market volatility. The key is not to immediately act on those emotions.

Before you make a move, you should take several factors into consideration.

Your retirement date should determine how you are invested. Younger investors should be much more aggressive because they can withstand market swings. However, if you are less than five years away from retirement, you should be more conservative with your investments.

Make sure you check on your allocations, as your original target for example, 60% stocks and 40% bonds may have shifted. If you are young, you may consider adjusting future purchases toward a higher percentage of stocks to take advantage of the market drop.

If you are older, you may want to consider moving some stock funds that have overperformed and buying more fixed-income investments, which are considered safer.

If you want to up your contributions to your 401(k) to take advantage of low stock prices, only do so if you are financially sound. That means you are secure in your job and income, no credit card debt and a solid emergency fund.

If you have little or no cash cushion, consider reducing your contributions and directing that money into a high-yield savings account. However, you should continue to contribute enough money to your 401(k) to get your employer's matching contribution.

If you are strapped for cash, you can take a loan from your 401(k).

The stimulus bill passed by Congress Friday relaxes the rules around retirement-plan loans, allowing you to borrow up to $100,000 from your 401(k). That's double the amount you can normally take.

Experts tend to suggest this as a last resort, since any cash you take out will not be earning money for you as an investment.

However, it is an option to help pay bills and have money on hand in the event of an emergency.

In this time of crisis, you'll also be allowed to take a hardship distribution of up to $100,000 from your 401(k), 403(b) or individual retirement account at any age without a withdrawal penalty, according to the stimulus package. It passed both the Senate and the House is now headed to President Donald Trump's desk for signing.

Normally, if you take a withdrawal from your 401(k) or IRA before age 59 , you are subject to a 10% penalty.

You also have to pay income tax on the amount taken. However, the bill gives you the opportunity to pay the taxes over the course of three years. You also have the option of repaying the amount you pulled from your account over that time.

"The biggest consequence of withdrawing money from your retirement plan is that you are losing out on that money compounding for years and years and years and you are going to have to put away even more money in the future to make up for that loss," Goldberg said.

Be sure to check that your workplace's plan allows hardship distributions it isn't required to do so. Even if it does permit them, check in with your human resources department or plan administrator before you proceed.

Read the original post:
5 ways to ensure the coronavirus outbreak doesn't cripple your retirement savings - CNBC

In Summary California physicians and nurses groups say they will heed the call, but are eager for more specifics on how it will work. Almost 600 people with the coronavirus are in intensive care, three times more than a few days ago.

As the number of people hospitalized in California with the coronavirus doubled in just four days, Gov. Gavin Newsom on Monday sent out an urgent call seeking help from the states 37,000 retired and part-time health care professionals.

Newsom issued an executive order that will temporarily allow retired doctors and nurses to return to work, broaden the duties that some nurses may perform and bring medical school and nursing students who are close to graduating into the workforce almost immediately.

Statewide, 1,432 people have been hospitalized with the virus, up from 746 four days earlier, Newsom said. Of those, 42% or 597 were in intensive care, compared with about 200 four days earlier.

Newsom, making the announcement on National Doctors Day, said he hoped that his appeal for the new California Health Corps would generate thousands and thousands of additional medical workers to respond to the pandemic.

We are very, very hopeful with this effort that we will see a surge of individuals, he said, urging qualified people to sign up for the program at healthcorps.ca.gov.

Newsoms order allows the state to waive licensing and certification requirements for certain medical professionals through June 30th.

It gives the state the flexibility to allow doctors and nurses who have retired in the last five years, students who have nearly graduated from medical and nursing schools and others who are in the process of obtaining a license or getting relicensed to treat patients. The new workers would be paid and covered by malpractice insurance.

Health care advocates and experts say the governors order is vague so they are eager for details about what exactly will be allowed under the executive order. They said while it admirably aims to expand the workforce, it simply authorizes state agencies and licensing boards to make the final decision on what licensing and scope of practice regulations will be relaxed or waived for the time being.

Its opaque, said Joanne Spetz, associate director of research at the Healthforce Center at UCSF. Most of us who have been watching this expected there to be more clarity today about what is going to be allowed.

Until the agencies provide that specificity for the workforce its unclear what is going to be permitted, Spetz said. Workers are going to need that guidance from a practical standpoint.

The executive order leaves a lot of questions unanswered, said Scott Casanover, vice president of government affairs for West Coast University, a private nursing school with three campuses in Southern California.

Nursing students have to complete a certain number of hands-on clinical hours with patients to graduate. All of those hours were cut short in the last month as host organizations like hospitals began shutting down their programs or the schools pulled their students after the sheltering in place orders were issued.

Im glad that the governor turned his attention to the issue but he really didnt make any decision in todays order, Casanover said. He repeatedly says every second counts, every minute counts, but here we have the governor kicking the can down the road to the state agencies.

The California Medical Association, which represents more than 50,000 physicians, supports the move by the governor, said Anthony York, spokesman for the organization.

We understand that we all have to get out of our bunkers a little bit, York said.

Sandra Hernandez, president and CEO of the California Health Care Foundation, praised the order, calling it a thoughtful step that the governor and his team is putting in place.

The point here is to mobilize all available workforce in California, and I fully expect these agencies are ready to act and take the appropriate steps to deploy as many of our workforce as possible, Hernandez said. Ive got to believe that all agencies will be playing their part.

Hernandez said calling on the mature health care workforce will garner a large response, and including young near-graduates is equally important.

They are very freshly trained and this is a younger workforce. Their training has been the most immediate and I think it was wise to deploy that workforce quickly into their respective professions as possible, Hernandez said.

Newsom said the groups involved put aside their differences to agree to the program.

The expansion of the role of nurses has been particularly controversial in California in recent years. Nurse practitioners have been fighting to persuade the California Legislature to permit them full scope authority, which would allow them to evaluate and treat patients independently without direct physician oversight.

Under current law a doctor can oversee four nurse practitioners. York said the Dept. of Consumer Affairs, which licenses professions, said on a conference call Monday that it will allow for a higher number per doctor as needed by hospitals and clinics, which will have to apply for the waiver.

However, the medical association, he said, is still opposed to legislation intended to give nurse practitioners the ability to practice independently.

Californias attention had been on stockpiling protective gear such as masks, gloves and ventilators, and greatly expanding the number of hospital beds for patients with the virus as well as other health problems.

The Naval hospital ship Mercy, moored at the Port of Los Angeles, has begun to care for patients who are not infected with the coronavirus, and numerous field hospitals are being erected in parking lots and sports arenas.

But now staffing the burgeoning medical facilities has taken primacy as the number of people hospitalized, particularly in intensive care units, has surged.

Newsom said the state would need to quickly increase its hospital capacity by two-thirds to handle the anticipated rush of cases.

While the rate of infections is rising, officials are more concerned at the much faster pace of patients requiring hospitalization.

Mark Ghaly, secretary of the state Health and Human Services Agency, said current models project the need for an additional 50,000 hospital beds by the middle of May. Thats in addition to Californias current inventory of 75,000 licensed beds.

Who better than those folks who are really close to being done to bring into the workforce now to essentially continue their clinical training with the help of experienced nurses or other health professionals, Ghaly said.

Building the workforce is critical, but so is their protection. As more workers are brought to the front line, the state has to ensure that they are provided adequate personal protective gear, which has been a struggle, said Stephanie Roberson, government relations director at California Nurses Association.

We cant talk about workforce and how we prepare for a surge if our nurses and other health care workers are not protected at the bedside, said Roberson.

Calling for almost-ready student nurses can ease the burden at hospitals, Roberson said, as long as they work under the direct supervision of experienced registered nurses.

We absolutely can use our student nurses judiciously in this situation, she said. And at the same time they can still gain the clinical experience they need for graduation, that can happen right now.

Nurses have regularly protested outside hospitals demanding more N95 respirators and other gear. An increase of medical staff will require that much more supplies, which the state is still sourcing.

Newsom said the state had distributed 32.6 million N95 masks, part of an estimated 100 million gloves, gowns, and other pieces of protective equipment officials are trying to procure, including as many as 10,000 ventilators.

He said the statewide social distancing edict has been successful, but when asked if the mandate that Caliornians stay at home was working to flatten the curve epidemiologists holy grail of decreasing the rate of infections he demurred.

The policy alone may not end the epidemic, Newsom said, But we know what does work, and thats physical distancing.

Newsom would not specify the cost of the program, but said some if it would be borne by the federal government.

Some other states have already allowed for retirees and students to begin treating patients and allowed some nurses to perform tasks usually reserved for physicians.

At least 33 states have amended licensing requirements for health care workers, according to the National Council of State Legislatures.

For instance, Washington has allowed volunteer doctors and practitioners from other states to practice as long as they are in good standing in their home state. Florida is allowing licensed health care workers from elsewhere to temporarily provide care without a state license. Iowa is allowing doctors, nurses and physician assistants with inactive or lapsed licenses to practice.

Originally posted here:
California starts recruiting retired and student doctors, nurses to handle surge in severely sick people - CALmatters

Connie Ottmann, a high school English teacher from Maine, had always wanted to live in New York City. And last summer, when she was 66, seemed the right time to do it.

Retired for several years, she had been rereading the works of the mythologist Joseph Campbell, who really affirmed living life as an adventure.

Once she made the decision, things fell into place. A friend who is a real estate agent offered to help rent her house in Hallowell, near Augusta, then quickly found a couple who signed a yearlong lease. Her sister in Irvington, N.Y., was going through some life changes and was happy to have her as a houseguest for several months, so Ms. Ottmann was able to conduct her apartment hunt from a place near the city.

It seems invisible hands carried me here, Ms. Ottmann said. I couldnt afford to rent an apartment alone so I thought, Ill rent a room.

She was confident that finding an apartment share would also go smoothly. Many friends and family members were not equally confident. People werent too optimistic, she said.

Her brother, who owns a house in Bedford-Stuyvesant, Brooklyn, didnt think she would be able to find a place. A college friend who lived in the city was equally discouraging about securing a room share: She said, Eh, thats mostly young people.

But her son and his girlfriend, who rent an apartment in her brothers house, were encouraging. So, undeterred, Ms. Ottmann started looking for Brooklyn room shares on Listings Project, a weekly email with real estate listings, and Roomi, an app.

She did experience a twinge of concern after noticing that most Listings Project users seemed to be between 28 and 40; Roomi also skewed younger.

Several responses she wrote to ads went unanswered, including one she sent to a pair of comedians. Id thought it might provide them with new material for their acts, she said.

I got a little discouraged at first, but then I started hearing back from people, Ms. Ottmann said.

A nice young man who got in touch had just rented an unfurnished apartment and was looking for someone to split the brokers fee, which wasnt ideal for Ms. Ottmann, who was planning to stay for only a year.

She met a pleasant couple looking to rent the second bedroom in their apartment, but the place was small and she thought living with a couple might not be the best option. A third apartment was run-down and smelled like cat urine.

And then she found a seemingly perfect situation: two rooms a bedroom plus a separate room for a studio in a Bedford-Stuyvesant three-bedroom shared with one roommate. It was a furnished sublet of at least six months and the rent, including utilities, was $1,200 a month.

Ms. Ottmann, who paints and writes a blog, had hoped for a space to work in other than her bedroom, but had dismissed the idea as unrealistic. And yet, here it was.

$2,400 | Bedford-Stuyvesant, Brooklyn

Occupation: Ms. Ottmann is a retired high school English teacher; Ms. Calvo is an archivist at the Gilder Lehrman Institute of American History. Dividing a three-bedroom: Ms. Ottmann gets two bedrooms, but Ms. Calvos room is about the size of the other two rooms combined, so they pay the same amount of rent. Dealing with the coronavirus: I knew there would be risks, uncertainties and trials along the way, Ms. Ottmann said, but this was not one she planned for.

When she saw it in person, Ms. Ottmann immediately liked the space. I found the apartment quite spacious, and I liked how they set it up, she said. The departing tenant, a woman in her 30s, interviewed her and offered Ms. Ottmann the two rooms before she met the roommate, Christine Calvo, 32.

Ms. Calvo, an archivist at the Gilder Lehrman Institute of American History, grew up in a household of four women in Los Angeles, so she wasnt concerned about getting along with Ms. Ottmann. After living in New York for 12 years, Ive had so many different types of roommates, she said. Ive lived with friends and friends of friends. Sometimes it worked out, sometimes it didnt. You never know what its going to be like. She fit all the criteria.

I would have wanted to meet me! said Ms. Ottmann, who moved in this December.

Connie is definitely one of the more laid-back roommates Ive had and respectful, Ms. Calvo said. Ive had some wild ones: I lived in one apartment without a door; one roommate started a fire, another misplaced the rent. Its been easy with Connie.

Were both introverts, Ms. Ottmann said of their rapport.

As for New York, I like it, she said. I mean, I love it.

Until recently, when she, like most New Yorkers, started spending all of her time at home, Ms. Ottmann could be found traveling on the subway, going to museums and lectures. She saw the Agnes Denes show at the Shed and David Byrnes American Utopia musical.

I want to meet people and take advantage of being here as much as I can, she said. And I want to know my way around really well. Maine is a beautiful place, but winters are hard and spring is even worse. And you have to drive everywhere. Theres a theater I love, but its a half-hour away.

She has also been able to spend more time with her son and his girlfriend, as well as her brother, whose wife died several years ago, and his 15-year-old twins. She was lucky, she reflected, that moving to New York has been an adventure and a chance to spend quality time like this with two of my siblings in our later years.

A few things have surprised her: how open-minded potential roommates were about her age, how helpful and nice New Yorkers are in general and how quiet the apartment is.

On one of her first nights alone there, she noticed a neighbor making some noise. She couldnt have been more delighted.

It was an opera singer practicing her scales, Ms. Ottmann said. I was, like, Oh my gosh Im in New York. I heard it and I thought, This is lovely.

More here:
Retiring to New York City and Getting a Roommate - The New York Times