Allianz Life

CARES Act update

As you are likely aware, the President signed into law on Friday, March 27, 2020 (after Congress passed) the Coronavirus Aid, Relief and Economic Security Act (The CARES Act).

Some of the key provisions included in the CARES Act you should be aware of include:

  1. Waiver of Required Minimum Distributions for 2020
    Required minimum distributions (RMDs) are waived for all retirees in 2020. This includes RMDs for inherited IRAs for those beneficiaries who were using a "stretch" option before 2020.
  2. Withdrawals from Qualified Plans, 403(b)s, and IRAs ("coronavirus-related distributions")
    Qualifying "coronavirus-related distributions" will still be taxed as income, however, the CARES Act waives the 10% federal additional tax for premature distributions related to the coronavirus for amounts not to exceed $100,000 from all qualified plans and IRAs subject to specific rules.
  3. Plan Loans from 403(b)s
    Loans from qualified plans can be doubled to $100,000 or 100% of the plan balance for plan participants who meet the same requirements as those for coronavirus-related distributions. In addition, for some qualifying plan participants, loan repayments – new or existing – that are due in 2020 can be delayed one year, and the repayment deadline can be extended by one year.

For more details, please refer to the CARES Act Overview (AMK-462-N).

We continue to analyze all the implications of the CARES Act. Please look for future communications with specific information on how its provisions will impact our individual contracts and processes. We are committed to providing you with this information as soon as it's available.

Read the CARES Act Overview

In the meantime, if you have questions, please feel free to contact your Allianz representative.
 

Guarantees are backed by the financial strength and claims-paying ability of the issuing company. Variable annuity and variable life insurance guarantees do not apply to the performance of the variable subaccounts, which will fluctuate with market conditions.

• Not FDIC insured • May lose value • No bank or credit union guarantee • Not a deposit • Not insured by any federal government agency or NCUA/NCUSIF

Products are issued by Allianz Life Insurance Company of North America, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297. In New York, products are issued by Allianz Life Insurance Company of New York, 1633 Broadway, 42nd Floor, New York, NY 10019-7585. Variable products are distributed by their affiliate, Allianz Life Financial Services, LLC, member FINRA, 5701 Golden Hills Drive, Minneapolis, MN 55416-1297.

In the state of New York, only Allianz Life Insurance Company of New York is authorized to offer annuities and life insurance.

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EGEN-2066 (4/2020)