On June 29, President Obama signed legislation to extend the Health Coverage Tax Credit (HCTC) through Dec. 31, 2019. The law was enacted as part of the Trade Preferences Extension Act of 2015, Pub. L. 114-27. The HCTC previously expired Dec. 31, 2013.
The IRS will manage the program again, and when new guidelines are ready, we'll let PBGC participants know how to apply for the tax credit. You'll find the information here, on Retirement Matters, and on PBGC.gov.
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Here at PBGC, it's our hope that you're using every week to plan for your retirement. But if not, this week, April 13 - 17, is a good time to start. That's because this week is National Retirement Planning Week (NRPW)!
Recognized in April, during financial literacy month, NRPW represents a national effort to help consumers focus on their financial needs during retirement. This effort is led by the National Retirement Planning Coalition - a group of prominent education, consumer advocacy and financial services organizations charged with educating Americans on the importance of retirement planning.
Do you receive a benefit from PBGC? If so, all or a portion of your benefit may be taxable. Each year, we report this information to the IRS and send you an IRS Form 1099-R that details the amount you received the previous year.
We'll mail your 2014 Form 1099-R to your address on file by Monday, February 2, 2015. If you don't receive your form soon after February 2, 2015, you may request a duplicate. Here's how:
- Use our online service, MyPBA, to view and print a copy of your 1099-R tax form for the most recent tax year.
- Call PBGC's Customer Contact Center to request a form by mail. The number is 1-800-400-7242.
When calling, remember to have your customer ID (PDF) or Social Security number, plan name and case number to help expedite the request.
While PBGC is required to withhold federal income tax, we do not withhold for state taxes. If your state has an income tax, you may owe tax on your PBGC benefit. To find out more, contact your state tax office.
For additional information, see our Frequently Asked Questions on IRS Form 1099-R.
With members of Congress, President Gerald R. Ford signed the Employee Retirement Income Security Act(ERISA) of 1974 on Monday, September 2, 1974. ERISA established the Pension Benefit Guaranty Corporation.
On Sept. 2, 2014, PBGC celebrated its 40th year of protecting pensions. And yesterday, PBGC released its FY 2014 Annual Report, highlighting the agency's accomplishments and areas for improvement. The review period covers Oct. 1, 2013 through Sept. 30, 2014.
PBGC's deficit increased to $62 billion in FY 2014, up from $36 billion the year before. The deficit increase is largely driven by the declining financial condition of a few multiemployer plans. The deficit in the multiemployer program grew to $42.4 billion, compared with $8.3 billion last year. This increase is largely due to the fact that several additional multiemployer plans are now expected to run out of money within the next decade. But the single-employer program's deficit saw an improvement and dropped to $19.3 billion, down from $27.4 billion in 2013.
That's right, National Save for Retirement Week is here!
While we encourage you to save for retirement throughout the entire year, this week is specifically devoted to bringing awareness to the importance of retirement security. And this week, you are encouraged to revisit your personal retirement goals to determine if you are on target to reaching those goals.
Not sure where to begin? No problem! Take advantage of the National Save for Retirement Week webinar series, which covers a variety of topics for all career levels. You can also create a customized retirement savings plan, using retirement calculators, to help you better understand your financial picture.
Don't have much room in your paycheck? Small changes make a big difference, too. Have you ever wondered how much you can save by packing a lunch? Let's just say those lunch trips to your favorite eatery can set you back tremendously over time. So on Wednesday, Oct. 22, 2014, participate in National Pack-A-Sack Lunch Day and see how this small step can make a big change in your financial future.
We hope this information will either help get the retirement conversation started or keep it going. With just a few small steps, you can see big changes in your retirement savings. And when it comes to saving for retirement, remember to dream big.
Each year, on September 15, we celebrate the start of National Hispanic Heritage Month. During this celebration, which runs through October 15, we recognize the significant impact Hispanic and Latino Americans have had on American history. We celebrate their rich culture and countless achievements. And this year's theme, "Hispanics: A legacy of history, a present of action and a future of success," reminds us of their profound impact on American culture.
In his proclamation, President Obama said our Nation is strengthened when we lift up the Hispanic community. He also said when we create more ladders of opportunity, we provide hope for all Americans to reach their greatest potential.
But when looking at retirement preparedness, Hispanic Americans are often lower on the ladder than the general population.
Although many Americans face difficulty planning for retirement, Hispanic Americans face unique challenges that other minority groups do not. Hispanic Americans typically have less access to employer-provided benefits and contribute less on their own. The reason? Greater emphasis is usually placed on short-term financial security, such as eliminating debt. Saving for retirement is simply not a short-term priority.