Do they know the difference?
Several weeks ago I corresponded with all of the federal legislators that represent our district. The subject of the correspondence was Minimum Required Distribution (MRD) from individual retirement accounts. With the financial market downturn in 2008 the federal government suspended the required MRD withdrawal in 2009. Since then withdrawals have been required. At end of 2011 the market had still not recovered and many individual retirement accounts were as much as 10 percent to 35 percent below their 2008 levels. Most all financial advisers say to not make withdrawals when market is in a downturn, yet the federal government requires withdrawals to be made, even if it accelerates the decline of a person’s retirement accounts. The question put forth to each of the legislators was: What are your views on Minimum Required Distribution for individual retirement accounts?
The only reply was from Sen. Amy Klobuchar and the first sentence in her reply was most interesting. It was: “Thank you very much for taking the time to send me your thoughts on the future of Social Security.” The next four paragraphs all related to Social Security and not one word about Minimum Required Distribution from individual retirement accounts.
If our federal legislators or their aides (who undoubtedly made the reply) do not know the difference between Social Security and individual retirement accounts such as IRA’s, 401k, 403B, 457, etc., what does that say about our current or future leadership of the United States of America.