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Retirement Planning > Saving for Retirement

‘Huge’ Appetite for More RMD Relief in Next Stimulus: Rep. Reed

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Rep. Tom Reed, R-N.Y., a member of the House Ways and Means Committee and the ranking Republican member on the Social Security Subcommittee, said Monday that he sees a “huge amount of appetite” among lawmakers to include more required minimum distribution relief in the Phase 4 stimulus package, which is being dubbed CARES Act 2.

The Problem Solvers Caucus, which Reed co-chairs, will be “taking the lead” on the RMD debate, Reed said during a Zoom meeting held by the American Council for Capital Formation.

The bipartisan Problem Solvers Caucus is now up to 50 members, Reed said.

“We are going to engage in our virtual Congress project where we actually can show you can use technology to debate some of these issues and be transparent with the American people,” Reed said.

“When you talk about minimum distributions and other type of protections for folks going through this [pandemic], and we see unemployment of 20% to 30% for the foreseeable short term, at least, that is a serious concern for people when it comes to their checking accounts and their ability to survive,” Reed said.

“I see a huge amount of appetite, if you would, by elected officials to recognize: ‘Yeah, the economy will come back online, but it’s going to come back online in phases; it’s also going to need cash flow reestablishment, it’s going to need liquidity because you’ve had all these disruptions through the entire system.’”

A Phase 4 stimulus package “may be Phase 4, 5 and 6 coupled together,” Reed continued, plus “you’re going to need some stimulus activity in order to stimulate the economy fiscally,” namely via an infrastructure bill, which he said “is also on the table in a strong way.”

All in all, the necessary aid packages could make the $2.2 trillion CARES Act “look like pennies,” he said.

Meanwhile, “the issues with Social Security are not helped when you have huge unemployment numbers,” Reed said. “We’re keeping a close eye on the actuarials.”

“We do know that not a lot of people save in America,” Reed said. “Hopefully there’s a wake-up type of sentiment where saving is encouraged and policies come out of this that further encourage savings.”

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