Rep. Katko Calls on Congressional Leaders to Protect the Economic Wellbeing of Central New York Seniors and Increase Flexibility for Retirement Savings Accounts in 2021

Statement

U.S. Rep. John Katko (R, NY-24) today led a bipartisan effort urging Congressional Leaders to suspend required minimum distributions (RMDs) from qualifying retirement saving accounts in 2021, continuing his work to protect the financial security of Central New York seniors impacted by the COVID-19 pandemic. Rep. Katko was joined by U.S. Reps. Josh Harder (D, CA-10), Brian Fitzpatrick (R, PA-1), Kendra Horn (D, OK-5), Chris Jacobs (R, NY-27), Max Rose (D, NY-11), David Kustoff (R, TN-8), Anthony Brindisi (D, NY-22), Peter T. King (R, NY-2), Harley Rouda (D, CA-48), Ann Wagner (R, MO-2), David Scott (D, GA-13), and Bradley Byrne (R, AL-1).

In March, Congress passed the CARES Act, bipartisan legislation Rep. Katko supported in the House. To provide retirement savers with flexible options for navigating economic uncertainty during the pandemic, the bill suspended required minimum distributions (RMDs) from qualifying retirement saving plans in 2020, including RMDs from individual retirement accounts (IRAs) and 401(k) plans. Following advocacy by Rep. Katko, the IRS later expanded relief for retirement savers who had taken their RMD earlier in the year by expanding the period during which these funds could be rolled into another retirement account.

In recent weeks, Rep. Katko has heard from Central New Yorkers who have concerns that the economic effects of the pandemic will persist into 2021 and beyond. To provide seniors with continued relief, Rep. Katko is urging Congressional leaders to include provisions that suspend RMDs for 2021 in the next COVID-19 relief package or year-end tax package.

"Many Central New York seniors are already concerned with making their savings last through their retirement years," said Rep. Katko. "Unfortunately, the pandemic has only served to heighten uncertainty surrounding their financial wellbeing. That's why, I'm leading a bipartisan effort urging Congressional leaders to suspend RMDs for 2021. By allowing Central New York seniors to keep more of their hard-earned money in their retirement accounts, we will protect their financial security and ensure they can fully benefit from the economic recovery."

The full text of the request can be found below:

Dear Speaker Pelosi, Leader McCarthy, Leader McConnell, and Leader Schumer,

Thank you for your leadership in the ongoing federal response to COVID-19. As we continue to battle the economic effects of the pandemic, it is unfortunately clear that for many Americans, the financial hardships will persist in 2021. For seniors already concerned with making their savings last through their retirement years, this time of uncertainty has only served to heighten the risks to their financial wellbeing.

When Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, it provided retirement savers with flexible options for navigating economic uncertainty during this crisis. Specifically, the CARES Act suspended required minimum distributions (RMDs) from qualifying retirement savings plans in 2020, including RMDs from individual retirement accounts (IRAs) and 401(k) plans. The IRS later provided additional flexibility by expanding the order extending the 60-day rollover period to August 31, 2020 for distributions made from qualifying retirement savings plans to ensure it applied to savers who took their RMD in January 2020.

We respectfully request that we build upon this important piece of the CARES Act by including provisions in either the next COVID-relief legislative package or any year-end tax package so that we can continue to relieve the burden of RMDs in 2021. By allowing retired Americans to keep more of their hard-earned money in their retirement accounts, we can help protect their financial security and ensure they can fully benefit from the economic recovery.

Thank you for your consideration of this important matter. We look forward to continuing to work with you to support American savers as we respond to this crisis.

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