Heartland Trust Company turned 30 this year, and we’ve accumulated a bit of history. Each quarterly newsletter this year will have a feature on one of our old locations.
After about five years in the Lightowler Johnson space, the ever-expanding company was in need of more space once again. HTC found that space a couple of blocks away – the top floor at 120 South Eighth Street. The first floor was home to the Neuropsychiatric Research Institute (NRI).

Adapted from Broadridge Communication Services

You know how important it is to plan for your retirement, but where do you begin? One of your first steps should be to estimate how much income you’ll need to fund your retirement. That’s not as easy as it sounds, because retirement planning is not an exact science. Every situation is different, and your specific needs depend on your goals and many other factors.

The Markets

Stocks rebounded from a dismal March by posting their best monthly returns since 1987, as investors were encouraged by the expectation of additional government stimulus programs and hope that the economy would be reopening soon. The Paycheck Protection Program and Health Care Enhancement Act provided funding for additional small business loans, and offered financial support to hospitals, while increasing the availability of more virus testing. The Federal Reserve added trillions of dollars in funds to its lending programs. A few states began easing lockdown restrictions and reopening a range of businesses. While there were plenty of ups and downs in the market during the month, April closed with each of the benchmark indexes listed here climbing notably higher. The Nasdaq gained 15.45%, followed by the Russell 2000, the S&P 500, and the Dow.

Adapted from Broadridge Investor Communication Solutions

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law on March 27, 2020. This $2 trillion emergency relief package represents a bipartisan effort to assist both individuals and businesses in the ongoing coronavirus pandemic and accompanying economic crisis. The CARES Act provisions for retirement plan relief for individuals under federal tax law are discussed here.

For those seeking access to their retirement funds, these include special provisions for coronavirus-related distributions and loans. For those seeking to preserve their retirement funds, certain required minimum distributions from retirement funds have been suspended.

Coronavirus-related distributions

A 10% penalty tax generally applies to distributions from an employer retirement plan or individual retirement account (IRA) before age 59½ unless an exception applies. Due to the coronavirus pandemic, the penalty tax will not apply to up to $100,000 of coronavirus-related distributions to an individual during 2020. Additionally, income resulting from a coronavirus-related distribution is spread over a three-year period for tax purposes unless an individual elects otherwise. Coronavirus-related distributions can also be paid back to an eligible retirement plan within three years of the day after the distribution was received.

Adapted from Broadridge Investor Communication Solutions

It’s generally a good idea to review your employer-sponsored retirement savings plan at least once each year and when major life changes occur. If you haven’t given your plan a thorough review within the last 12 months, now may be a good time to do so.

Have you experienced any life changes?

Since your last retirement plan review, have you experienced any major life changes?

For example, did you get married or divorced, buy or sell a house, have a baby, or send a child to college? Perhaps you or your spouse changed jobs, received a promotion, or left the workforce entirely. Has someone in your family experienced a change in health? Or maybe you inherited a sum of money that has had a material impact on your net worth. Any of these situations can affect both your current and future financial situation and should be considered as you review your retirement savings needs.

In addition, your annual review is a good time to examine the beneficiary designations on your plan account to make sure they reflect your current wishes. This is particularly true if your marital situation has changed. With most employer-sponsored plans, your spouse is automatically your plan beneficiary unless he or she waives that right in writing.

Say, for example, you remarried and you would like your children to remain as primary beneficiaries on your retirement plan. In that case, your spouse would need to waive his or her right to the assets in writing.

HTC Team News 

• Missy Zarak has been promoted to the position of Trust Officer. Congratulations, Missy!
• Heather Jung joined Heartland Trust Company as a Retirement Services Administrative Associate. She brings over 13 years of experience assisting plan sponsors, financial advisors, and third party administrators with retirement plans.

• Shara Fischer, Relationship Manager, obtained her Chartered Retirement Planning Counselor (CRPC) designation. Professionals with this designation concentrate on retirement planning by focusing on client-centered, problem-solving. Congratulations, Shara! 
• The HTC team has opened numerous “satellite offices” since March. These offices include our employees’ kitchens, home offices, living rooms, and spare bedrooms. Here’s a glimpse of how we are working from home to reduce the spread of COVID-19.

Meet Gary Hanson

Gary Hanson is the senior vice president and a director at Heartland Trust Company. He has been an integral part of the growth and success of Heartland Trust over the years. While now enjoying a certain amount of “flex-time,” he continues to be in the office almost every day.

What do you do at Heartland Trust?

Along with ongoing business development responsibilities, I managed the Retirement Services Division at Heartland until 2014. My current responsibilities at HTC include account administration, client relationships, leading the corporate finance team, and serving on the executive committee.      

Tell us about yourself.

I am originally from Crookston, Minnesota, and, except for a two-year break, I have been in the Fargo area since graduating from Moorhead State University in 1972 with an accounting degree. My wife, Ruth, and I live in West Fargo, and our daughter, Rachel Clarke, and family live in north Fargo, while our son, Ben, and family live in south Fargo.     

Heartland Trust Company turns 30 this year, and we’ve accumulated a bit of history as we enter our fourth decade. Each quarterly newsletter this year will have a feature on one of our old locations.

Shortly after Heartland Trust opened its doors for business at the same location as Busy Bubbles Car Wash & Laundromat, it was clear the growing company needed more office space.

Adapted from Broadridge Investor Communication Solutions

On December 20, 2019, a $1.4 trillion spending package was enacted that included the Setting Every Community Up for Retirement Enhancement (SECURE) Act, which had overwhelmingly passed the House of Representatives in the spring of 2019, but then subsequently stalled in the Senate. The SECURE Act represents the most sweeping set of changes to retirement legislation in more than a decade.

While many of the provisions offer enhanced opportunities for individuals and small business owners, there is one notable drawback for investors with significant assets in traditional IRAs and retirement plans. The elimination of the “stretch IRA’” could cause far-reaching change to many financial and estate plans. Individuals will likely want to revisit their estate-planning strategies to prevent their heirs from potentially facing unexpectedly high tax bills.

All provisions took effect on or after January 1, 2020, unless otherwise noted.