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View as a web page.
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October 2019
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ANNUITY NEWSLETTER
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Talcott Resolution’s Ongoing Brand Updates
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On May, 31 2018, the sale of Talcott Resolution was completed, and is no longer part of The Hartford. As an independent stand-alone insurance company, Talcott Resolution has been working over the past year to update our documentation, correspondence, and website to show our new Talcott Resolution look and feel.
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Beginning soon, we will be making updates to our telephone system. You and your clients will experience changes to the greeting and menu options when you call the Talcott Resolution Contact Center.
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Help Clients with Required Minimum Distribution Questions
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The fourth quarter is here, and we’d like to help you prepare your clients with qualified retirement plans for year-end 2019 by providing you and your clients some frequently asked questions and answers about Required Minimum Distributions.
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FAQs
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| Q:
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What is a Required Minimum Distribution?
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| A:
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If you own a qualified retirement plan (i.e. IRAs, including SEP and Simple IRA Plans) and are age 70 ½ or older during the 2019 tax year, the Internal Revenue Service (IRS) requires you to take a Required Minimum Distribution (referred to as RMD) from your retirement account each calendar year.
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| Q:
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When must I take my RMD if I’m required to do so?
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| A:
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As an example, if 2019 is the first year you are required to take an RMD, you have until April 1, 2020 to do so for the 2019 tax year. However, you would also be required to take your 2020 tax year RMD by December 31, 2020, meaning you will take two RMD withdrawals in one year.
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If you have previously taken an RMD, you are required to take your RMD by December 31 each year.
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| Q:
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When does the RMD need to be withdrawn from my contract every year?
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| A:
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The RMD can be withdrawn anytime between the first business day of the tax year, and before the market closes on the last business day of the tax year, which is typically December 31, unless that date is on a weekend. Please note that certain riders may impact the timing of a RMD withdrawal.
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| Q:
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Can I take a RMD from one qualified account instead of separately from each of my qualified accounts?
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| A:
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If you own multiple IRAs, you must calculate the RMD separately for each IRA that you own, but can withdraw the aggregate RMD amount from one or more of the IRAs. Please note that Contingent Deferred Sales Charges (CDSCs) may apply at Talcott or other companies. Please consult with a tax advisor to determine the impact these rules may have on you.
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Similarly, if you own multiple 403(b) plans, you must calculate the RMD separately for each 403(b) you own, but can withdraw the aggregate RMD amount from one or more of the 403(b) plans.
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For retirement plan types such as 401(k) and 457(b) plans, RMDs must to be taken separately from each plan account.
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| Q:
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Am I required to take an RMD from my 401(k) or other type of employer plan?
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| A:
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RMDs are required from 401(k), profit shares, 403(b), or other defined contribution plans by April 1 of the year following the calendar year in which you either reach age 70 ½ or retire. Please consult with a tax advisor to determine the impact these rules may have on you.
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| Q:
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What happens if I don’t take my RMD or fail to withdraw the full amount of my RMD by the required deadline?
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| A:
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If you are required to take a RMD and you do not withdraw a RMD or fail to withdraw the full amount of the RMD, or you do not withdraw the RMD by the applicable deadline, you may be subject to a 50% IRS penalty.
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Please consult with a tax advisor to determine the impact these rules may have on you.
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RMD Quotes and Variable Annuity Statements of Account Available Online
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You can process RMD quotes as well as view your clients’ third quarter 2019 variable annuity Statement of Account online through Talcott Resolution’s Annuity Service Center.
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Log into Talcott Resolution’s Annuity Service Center by entering your user ID and password, or registering as a new user if you do not already have access.
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To process RMD Quotes:
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Once you are logged in, go to "My Clients" and select the contract number for which you would like to process a RMD quote, and then go to the "Manage Contracts" tab and click on the RMD quote link. After completing the RMD quote process, you may print or save the quote electronically for your records.
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To view Statements of Account:
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Once you are logged in, go to "My Clients" and select the contract number you would like to review, and then go to the "Online Documents" tab. Or, go to "My Clients" and select the "Print Statements" tab. Here you can save time by viewing or printing all or a portion of your clients’ statements at once.
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