Question: Your client’s son, Henry, is eight years old. He was the named beneficiary of his Uncle Ray’s traditional IRA. Uncle Ray died in 2020 at the age of 55. The client is asking you about how this inheritance will impact Henry. Your client has heard that in some cases an IRA must be distributed in five years or perhaps 10 years but, seems to recall that perhaps Henry’s age determines how many years he will have to distribute the IRA income. What do you tell the client?

Answer: Henry is an eligible designated beneficiary. As such, he is required to distribute required minimum distributions (RMDs) over Henry’s life expectancy beginning in 2021, the year after his uncle’s death. Once Henry reaches the age of majority (generally age 18), the remaining balance in the IRA must be distributed within 10 years from that date.

Eligible designated beneficiaries are surviving spouses, minor children, chronically ill individuals [(§401(a)(9)(E)(ii)(IV)], or any other individuals who are not more than 10 years younger than the decedent.

If Henry had not been an eligible beneficiary, he would need to distribute the entire balance of the IRA on or before Dec. 31 of the year that includes the fifth anniversary of his uncle’s death or Dec. 31, 2025.

Take Command Health, an HRA administrator that offers employee enrollment support, unveiled its annual QSEHRA report just in time for open enrollment. Now more than ever, small businesses are looking for ways to help their employees by providing benefits on a budget that works for them. The Qualified Small Employer HRA (QSEHRA) is based on small business owners reimbursing their employees for health insurance rather than buying it for them.

“Last year, our clients offered their employees nearly $12 million in benefits through a QSEHRA,” shares Jack Hooper, CEO, Take Command Health. “This is a flexible alternative to expensive small group plans that offers budget control and predictability for employers and plan choice, and portability for employees.”

Key findings include:

• Professional services, associations and nonprofits, healthcare providers and services, tech and financial services lead in signups
• Employer size ranged from 1-36 employees, with the average being four employees
• California, Texas, North Carolina, New York and Florida lead in signups
• Average monthly reimbursement is $332.58 for singles, $491.72 for couples, $505.52 for families
• Utilization rates were just under 64%, meaning that employees aren’t using their full benefit (the employer keeps the leftover funds)
• Recent client survey found that 1 in 5 clients who responded are women-owned businesses, 1 in 10 are veteran-owned businesses and 1 in 13 are minority-owned businesses

“We’re seeing QSEHRA signups continue to trend upward despite the pandemic and economic uncertainty,” adds Hooper. “Carriers are returning to markets, individual premium prices are stabilizing and awareness is growing.”

NATP offers an on-demand webinar (free for Premium level members) called Navigating Employer-Provided Health Insurance that will help you navigate the contributions, limitations, distributions and eligibility for HSAs, FSAs, HRAs, QSEHRAs, as well as self-employed health insurance deductions. Take Command Health also offers an ICHRA report and an ICHRA guide for those interested in learning more.

It’s been a rollercoaster of a year, to say the least, so we wanted to take time to reflect as a staff on what we’re thankful for this year. Here are a few of our staff members’ responses:

Kate: I’m thankful for our amazing friends and family helping out with my broken leg/ankle. The Hampton Inn near the hospital kept my husband in cookies and cokes while we couldn’t get in our house. Our neighbors built a wheelchair ramp so we could get in the house, people brought over food, and my parents helped us pay for immediate needs. Strangers from our small town loaned us crutches at 10pm on a Saturday night when the stores were closed.

Allyson: I am so thankful to have finally adopted my first fur child, Sophie. She is my constant shadow and loves to cuddle. She has kept me busy during the pandemic with daily walks and teaching her new tricks. If I try to relax before her walk, she will let me know that is unacceptable with a woof followed by a paw.

Stephanie: I am thankful for the abundance of produce harvested from our garden! Still had red/ripe tomatoes as of November 2020 here in the UP. 😊 Why? Because food sovereignty is our goal.

Melissa: I am thankful for the opportunity to slow down and appreciate the people in my life who mean the most to me. In a pre-COVID world I moved at warp speed. I have learned to slow down and by doing so, I have been able to spend good meaningful time with my family and close friends.

Sam: I’m thankful for all the people who took the time to check in. Dealing with anxiety and depression is tough enough, but add a pandemic on top of that, it’s enough to send someone into a dark place. Knowing I have people who care about me in my life enough to simply check in and genuinely ask how I’m doing – and mean it – has made a world of a difference.

Tricia: I’m thankful that my daughter and son in law were able to be married on 1/25/20 and go on a family trip to Disney in February before the fear of the pandemic set in. Everything was perfect and magical and then all of a sudden their little family was forced to bond and connect on a level that may not have happened in a ‘normal’ time. They are closer than ever and I’m thankful everyone has remained healthy.

I’m thankful that my parents live within one mile and are both healthy and safe.

Manuela: My husband and children all have survived COVID-19, and I was spared, which, alone is a miracle. My husband was very ill for five weeks and we had to take a trip to the ER, which was an overwhelming feeling because I couldn’t be with him and I was really worried that I could lose him. On a personal level I can honestly say this is what I am most grateful for. But there are not only personal reasons I feel grateful for this year. I am so thankful to work for NATP during a time like this because of the continuous support we receive. This pandemic has definitely thrown a curveball at our direction but as always everyone comes to together and we are able to provide the information and education our members and non-members need while staying safe.

Patti: Sometimes it is the small things. I am thankful…

• Not to need to pack up my lunch salad every day. It’s nice to use a real bowl and silverware from home.
• Not to need to commute to the NATP headquarters daily; didn’t think it was a big deal until stopped during the pandemic.
• Being “pushed” to use Teams more to interact with all of work team has allowed me to better know my remote colleagues with everyone being on a level playing field.

Alissa: I guess I would sum it up with, I am thankful that 2020 challenged me to rethink and reaffirm my priorities.

Amanda: I’m thankful to work at a company like NATP, that has not only allowed me to keep working during this pandemic but has also been super accommodating with working from home. I’m also very thankful for video platforms like Zoom, Teams and FaceTime, to keep in touch not only with my friends and family, but coworkers too!

Megan: As Charles Schulz once said, “Happiness is a warm puppy.” So, this holiday season, I am thankful for having a place to snuggle with my warm puppies with a hot cup of coffee.  

Janine:

• I am thankful for my job and I sincerely appreciate every single member that we are honored to serve.
• I am thankful for my co-workers who are embracing the changes in this new remote work environment and doing their part to stay healthy and support our communities.
• I am thankful for the snow, I am thankful for the snow, I am thankful for the snow…
• I am thankful that I am alive and my immediate family and friends are healthy and safe.
• I am thankful for the opportunity to slow down and live every minute of every day.
• I am thankful to see how challenging times can bring out the best in people.
• I am extremely thankful for the essential workers who serve our communities.
• I am thankful for the OFF button on the tv.

Jen: I am thankful for the extra “stolen moments” with my family, particularly my teenagers, while the world seemed to stand still as we all quarantined. Memories were created and bonds were strengthened more than I ever thought possible.