WASHINGTON — AARP CEO Bill Novelli today sent a letter to Treasury Secretary Paulson urging him to take immediate action to temporarily freeze mandatory retirement account withdrawals.
Currently, Americans aged 70 ½ and over are required to take distributions from their retirement accounts based on the fair market value of their account on the last day of the previous year. Given the overall decline in the stock market, this could force older Americans to make a choice between taking a withdrawal that was calculated based on much higher values in retirement accounts or facing a high tax penalty. Making minimum withdrawals optional rather than mandatory for this year beginning immediately would help give older Americans some much needed financial flexibility as they struggle to manage their finances during this difficult economic time.
Excerpts from Novelli’s letter to Secretary Paulson follow:
“The sudden decline in the economy and plunging stock markets has jeopardized the retirement savings of millions of retired workers. In addition to steps that are already being taken to stabilize the financial markets, we believe it is also critical to help stabilize individual finances.
“Given the impending December mandatory retirement distribution deadline, we urge you to act quickly to exercise your authority and implement an immediate, temporary freeze on mandatory retirement account withdrawals. We also urge you to provide immediate relief for retirees who do not have the option to delay withdrawals and who find it necessary in these difficult economic times to withdraw funds from retirement accounts to meet daily living expenses.
“We believe that fairness dictates that we provide relief for these individuals who have no other recourse than to use their retirement savings to meet current living expenses.”
A complete copy of Novelli’s letter follows. For more information, contact AARP Media Relations.
Dear Mr. Secretary:
Thank you for meeting with the AARP Board of Directors recently to discuss the work you are doing to stabilize the financial markets and improve the economic outlook. The members of the Board were impressed with your candor and dedication.
I would like to follow up on one particular issue raised at that meeting – the issue of minimum required distributions (MRD) from retirement accounts. As you know, under current law, individuals must begin to withdraw certain minimum amounts every year from their IRAs and 401(k) accounts when they reach age 70 ½ based on the fair market value of the account on the last day of the previous year. Failure to take a required distribution by December 31 of this year results in a tax penalty equal to 50 percent of the amount of the distribution.
Given the current state of the economy and the stock markets, this means that many older account holders will be required to take a larger than anticipated withdrawal (based on the fair market value of the account on December 31, 2007) at a time when their investments have suffered substantial losses as measured by the various indices. The Dow Jones Wilshire 5000 Index, for example, closed at 8,502.40 on October 27, 2008. This level represents a 45 percent decline from the stock market peak that occurred on October 9, 2007. This index is now at the same level it was in July of 1997.
The sudden decline in the economy and plunging stock markets has jeopardized the retirement savings of millions of retired workers. In addition to steps that are already being taken to stabilize the financial markets, we believe it is also critical to help stabilize individual finances. Given the impending December MRD deadline, we urge you to act quickly to exercise your authority and implement an immediate, temporary freeze on mandatory retirement account withdrawals. We also urge you to provide immediate relief for retirees who do not have the option to delay withdrawals and who find it necessary in these difficult economic times to withdraw funds from retirement accounts to meet daily living expenses. We believe that fairness dictates that we provide relief for these individuals who have no other recourse than to use their retirement savings to meet current living expenses.
AARP commends you on your leadership in dealing with the current financial crisis, and urges you to take the necessary step to also bring relief to those who have suffered heavy personal losses. We support your efforts to stabilize the financial markets and improve the economic outlook of both individuals and the nation. Working together, we can better ensure the financial security of Americans of all ages.
Sincerely,
William D. Novelli
Chief Executive Officer
New Congressional Award Honors Leaders for Championing for Older Americans
For 2008, AARP is recognizing 20 Members of Congress (10 in both the House and Senate) who were instrumental in enacting and advancing legislation in six key areas: economic stimulus, Medicare, housing, nutrition, falls prevention, workplace IRAs and 401(k) fee disclosure. Sen. Grassley’s co-author on the economic stimulus bill, Senator Max Baucus (D-MT), was also honored with a Legislative Excellence Award.
DUBUQUE, Iowa – Divided We Fail Iowa announced today that U.S. Senators Charles Grassley (R-IA) and Tom Harkin (D-IA) and all five of Iowa’s Representatives in the U.S. House have now officially endorsed Divided We Fail , a diverse nationwide initiative of businesses, consumers and labor organizations calling for bipartisan action on health and financial security issues.
AARP HONORS BRUCE KOEPPL WITH
LYN BODIFORD AWARD FOR EXCELLENCE IN ADVOCACY
AARP SeniorState Director of Iowa Celebrated for His Efforts in Promoting
AARP’s Divided We Fail Initiative
WASHINGTON , D.C. – Today AARP lauds Bruce Koeppl, AARP Senior State Director of Iowa, with the Lyn Bodiford Award for Excellence in Advocacy. This annual award recognizes an outstanding AARP employee from either a state, regional or national Association office for his or her unrelenting service and achievement in advocacy efforts.
It is named after Lyn Bodiford, an Associate State Director for Advocacy in Florida who died unexpectedly in 2003.
"Bruce is a champion for our members and for all generations," said Bill Novelli, CEO of AARP. "His leadership, creativity and political savvy enabled us to effectively lead our Divided We Fail initiative. He represents the best that AARP has to offer Iowa and the nation."
Koeppl helped organize and orchestrate the Davenport, Iowa Democratic Presidential Debate and the Sioux City, Iowa Republic Presidential Debate before the Iowa Caucuses. Both caucus events focused upon two pivotal Divided We Fail issue areas—health and economic security. These debates involved the likes of former Governor of Arkansas Mike Huckabee, Governor of New Mexico Bill Richardson, Senator John McCain, Senator Joe Biden, Senator John Edwards, Senator Chris Dodd and Senator Hillary Clinton and were among the highlights of the caucus and primary season.
Koeppl was also responsible for leading community conversations about health care and financial security in over 40 Iowa cities, delving deep to better understand the real needs of Iowans. The conversations brought people of varying backgrounds together to consider different options and trade offs and to find common ground on health care and financial security issues. His efforts were so successful, that this became a model for many other AARP state offices to adopt during 2008. He also crafted events such as a Divided We Fail statewide bus tour, which garnered strong media coverage, as well as the attention of the presidential candidates themselves.
"As one of the Divided We Fail pioneers in the early primary states, Bruce and his team knocked the ball out of the park," said Nancy LeaMond, Executive Vice President of Social Impact at AARP. "I am impressed by his passion for social change and his ability to deliver it by working in collaboration with the national and regional AARP teams."
It's time we ensure health and long-term financial security for all. That's why AARP, Business Roundtable, the Service Employees International Union and the National Federation of Independent Business, are leading Divided We Fail, an initiative to give voice to millions of Americans who are tired of letting Washington gridlock stand in the way of affordable, quality health care and long-term financial security – the most pressing domestic issues facing our nation. Common sense solutions are needed, and everyone – individuals, businesses and government – has a role and a responsibility in ensuring health and financial security for all. Go to www.dividedwefail.org to learn more.
AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political Initiative s or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world's largest-circulation magazine with over 33 million readers; AARP Bulletin, the go-to news source for AARP's 39 million members and Americans 50+; AARP Segunda Juventud, the only bilingual U.S. publication dedicated exclusively to the 50+ Hispanic community; and our website, AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
Get ready for the Divided We Fail Van Tour! Beginning the last full week in September, AARP members and other interested parties are invited to come to van tour stops to learn about and discuss health care and financial security issues and how to break the gridlock in Washington. Van stops include:
Please contact Mark if you need any other information about these events @ 515.697.1021 or mfetterhoff@aarp.org.
AMES, Iowa -- Iowa State University Extension will sponsor four Web conferences covering flood cleanup and rebuilding issues on Wednesday evenings of Sept. 17 and Oct. 8. Each Web conference is set for 7-8:30 p.m.
To find out how to participate in these online conferences, contact your local ISU Extension county office.
Flood cleanup and recovery continues to be a major issue in many Iowa communities, said Mary Yearns, an ISU Extension housing specialist. “Some people are still hoping to go back and clean their homes; others are waiting to find out if they can get a buy-out so they can move on. Some people simply don’t have the resources to clean up or rebuild.”
The four Web conferences will cover deciding whether a home can be saved, cleaning up the mess, and rebuilding and relocating individual homes as well as entire neighborhoods or communities, Yearns said.
The Web conferences also will be archived on the ISU Extension Website, www.extension.iastate.edu. Details about each conference follow.
Sept. 17: Can I build a better home? Rebuilding better than
code, going “green” and other issues
This session will cover issues homeowners should consider if
they will be rebuilding their homes. Speakers will discuss building
codes, “green” building practices, energy efficiency,
universal design and other issues.
Oct. 8: Should our neighborhood stay or move to higher
ground? Rebuilding vs. relocating
This session will cover issues that neighborhoods and
communities face as they consider whether to rebuild in the area
that flooded or to move entire neighborhoods or communities to new
locations. Speakers will discuss moving homes as well as
entire neighborhoods out of the flood plain, building affordable
housing, moving existing homes from the flood plain to a new
location and reducing the impact of future flooding.
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Contacts :Mary Yearns, Human Development and Family Studies, (515) 294-8520, yearns@iastate.edu
Laura Sternweis, Extension Communications and External Relations, (515) 294-0775, lsternwe@iastate.edu
The Iowa Department of Elder Affairs and Iowa Legal Aid’s Legal Hotline for Older Iowans are presenting a series of free Elder Law seminars on October 14 and 21, 2008. The seminars will provide older Iowans and their caregivers with valuable information to protect their rights and limited resources. Pre-registration at least ten days prior to the seminars is requested to ensure that everybody receives the written seminar materials.
The first seminar on October 14 is about life planning issues. People will learn about health care directives, financial powers of attorney, guardianships, conservatorships, wills, estate planning tools to avoid probate, and Medicaid and other programs to help pay nursing home expenses.
The October 21 seminar will focus on consumer protection and public benefit issues, including identity theft, predatory lending practices, illegal debt collection activities, and programs to help pay Medicare premiums, prescription expenses and home care costs.
These seminars are funded in part with grants from the U.S.
Administration on Aging and the Lawyer Trust Account Commission. Both seminars will begin at 12:30 p.m. and end at 3:45 p.m. They will be broadcast over the Iowa Communications Network at the following locations:
Atlantic - Atlantic Public Library, 507 Poplar Street Boone - Ericson Public Library, 702 Greene Street Burlington - Great River Area Education Agency, 3601 West Avenue, East Entrance Carroll - National Guard Armory, Highway 30, 1712 LeClark Road, South Entrance Cedar Rapids - Thomas Jefferson High School, 1243 20th St. SW, Room 104A Charles City - North Iowa Area Comm. College, 200 Harwood Dr., Front Entrance, Rm 106 Clarinda - Iowa Western Comm. College, 923 East Washington, Room 306 Clinton - Clinton Community College, 1000 Lincoln Blvd, Room 105 Corning - Corning High School, 904 8th St., Room 12 Council Bluffs - Council Bluffs Public Library, 400 Willow Avenue Des Moines - Ola Babcock Miller Bldg., East 12th St. and Grand Ave., Room 308 Forest City - Forest City High School, 206 W. School Street, Room 328, SE entrance Hiawatha - Hiawatha Public Library, 150 West Willman Street Humboldt - Humboldt Public Library, 30 6th Street, North Iowa City - Iowa City Public Library, 123 South Linn Street, Meeting Room D Iowa Falls - Iowa Falls-Alden High School, 1903 North Taylor, Room S217 Johnston - Heartland Area Education Agency, 6500 Corporate Drive, East Side Entrance Lamoni - Lamoni High School, 202 N Walnut Street, Ag Room Manchester - Manchester Public Library, 304 N Franklin Street Marshalltown - Iowa Veterans Home, 1301 Summit, Ford Conference Room, Sheeler Building Muscatine - Muscatine Comm College, 152 Colorado Street, Larson Hall, So. Entrance, Room 60 Oskaloosa - Oskaloosa Public Library, 301 South Market, South Entrance Ottumwa - Great Prairie Area Education Agency, 2814 N Court Street, Front Entrance Sheldon - Sheldon National Guard Armory, 920 Western Avenue, West Entrance Sioux City - Department of Human Services, 822 Douglas St., Fourth Floor Waterloo - Department of Human Services, Pinecrest Office Building, 1407 Independence Ave. West Union - West Union Community Library, 210 North Vine Street, Heiserman Annex
To register for any of the seminars, or for more information, call the Legal Hotline for Older Iowans at 1-800-992-8161, or e-mail landerson@iowalaw.org.
AARP is contributing the $20,000 to Aging Resources Foundation Disaster 08 Relief Fund. Aging Resources Foundation is an established foundation within the
Koeppl met with Governor Chet Culver at the Rebuild Iowa Commission session recently in
“I’m pleased AARP has joined with the many organizations, companies and individuals who are helping to rebuild
The Aging Resources Foundation 08 Disaster Fund is designed to meet the gaps where FEMA and other assistance programs fall short. "There are so many cases where older Iowans have lost everything - their homes where they may have lived for 30 or more years, their communities, and basics like clothing and medical equipment,” said Donna Harvey, Director of the Hawkeye Valley Area Agency on Aging, one of the areas with the most disaster-affected older Iowans. “This fund is set up to help with everything from assisting with transportation to doctor’s appointment to helping replace the orthopedic shoes one of our victims lost in the tornado. These are basic, unmet needs that are mounting and many times uncovered by other programs.”
“With our shared mission of helping Iowans age with independence, dignity and purpose, AARP is pleased to contribute funding that will support older Iowans through the existing Area Agency on Aging network, and we hope more people will contribute as well,” said Koeppl.
Iowans interested in building on the AARP contribution can visit www.agingresources.com for more information, or call or write Aging Resources Foundation,
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About AARP
AARP is a nonprofit, nonpartisan membership organization that helps people 50+ have independence, choice and control in ways that are beneficial and affordable to them and society as a whole. AARP does not endorse candidates for public office or make contributions to either political campaigns or candidates. We produce AARP The Magazine, the definitive voice for 50+ Americans and the world’s largest-circulation magazine with over 33 million readers; AARP Bulletin, the go-to news source for AARP’s 39 million members and Americans 50+; AARP Segunda Juventud, the only bilingual U.S. publication dedicated exclusively to the 50+ Hispanic community; and our website, AARP.org. AARP Foundation is an affiliated charity that provides security, protection, and empowerment to older persons in need with support from thousands of volunteers, donors, and sponsors. We have staffed offices in all 50 states, the
About Aging Resources and the Aging Resources Foundation
Aging Resources of Central Iowa is a private, non-profit service agency that administers programs and services to over 100,000 elders 60 years of age and older in central Iowa. Aging Resources celebrates 35 years of service in 2008. The mission of Aging Resources is to lead, advocate, and serve as well as plan and coordinate resources in the provision of services to older adults in central
Aging Resources Foundation Aging Resources’ Board of Directors established a private, non-profit foundation, Aging Resources Foundation is a private, non-profit foundation established in 2002. Aging Resources Foundation accepted the responsibility to receive and distribute disaster relief funds for the needs of older Iowans who suffered significant personal losses in the Iowa Floods of 2008. All funds contributed to the Aging Resources Disaster 08 Relief Fund will be distributed state-wide to older persons in greatest need in accordance with an established funding formula. All monetary contributions are tax deductible. Formal acknowledgement of all donations will be made by letter/receipt.
Do you have legal questions, but nowhere to turn for information? The Department of Elder Affairs and the Iowa Legal Aid’s Legal Hotline for Older Iowans is sponsoring FREE Seminars across the State for Older Iowans and their caregivers. "Life Planning Issues" on July 15, 2008 and "Consumer Issues & Public Benefits" on July 29, 2008.
These free seminars will help you:
Both seminars take place over the Iowa Communications Network at 25 sites around the state. Go to the following website for more information and a registration form.http://www.iowalegalaid.org/link.cfm?2260