CARES Act Recap

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.

Heartland TrustCARES Act Recap
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How Often Should I Review Retirement

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.

Heartland TrustHow Often Should I Review Retirement
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HTC Team News and Honors

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.
Heartland TrustHTC Team News and Honors
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Meet Gary Hanson

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.     

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Celebrating 30 Years: Part 2

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.

Heartland TrustCelebrating 30 Years: Part 2
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SECURE Act Passed; Stretch IRAs Facing Elimination

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.

Heartland TrustSECURE Act Passed; Stretch IRAs Facing Elimination
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Celebrating 30 Years

Heartland Trust Company turns 30 this year. As we celebrate this milestone, we’ll include a feature on one of our old locations in each quarterly newsletter. 

Steve Halverson, chairman of the board and former president, was approved for a charter by the North Dakota Department of Financial Institutions in August 1989 to start an independent trust company. Office space for the upstart trust company was found in the same building as Busy Bubbles Car Wash & Laundromat at 2102 12th Street North in Fargo. Steve’s father, Hans Halverson, owned the building and let Steve use the space for several months while he was getting everything ready. The charter was officially granted on January 18, 1990. Doors officially opened for Heartland Trust Company on January 23, 1990, and as Steve likes to add, “the door didn’t open, and the phone didn’t ring.”

 

Heartland TrustCelebrating 30 Years
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Meet Missy Zarak

Meet Missy Zarak

Missy is an administrative associate working in the personal trust area. She provides excellent service to clients with trust, agency, and IRA accounts. She has over 30 years of experience in the trust business and has served many clients over the years in various roles.

Tell us about yourself.

I was born and raised in Dickinson, North Dakota, in a large family as one of 12 children. Following graduation at Trinity High School, I finished college at Minnesota State University in Moorhead, Minnesota, and graduated with a bachelor of science degree in legal assistant studies. 

 

 

I commute every day from Wahpeton, North Dakota, where I live with my husband, Mark. We have four children who are now all adults: Cole, Cody, Carson, and Carleigh. I have been promoted from mother to grandmother status and I’m now called “Ma Ga” by two beautiful granddaughters. Spending time with my growing family is one of my greatest pleasures.

Heartland TrustMeet Missy Zarak
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HTC Team News

In December, the Heartland Trust team made tie-blankets to donate to the YWCA.

Dropping off blankets at the YWCA (Pictured L to R: Gary Hanson, Jan Nelson, Mary Fridgen, Renee Hobbs, Lori Theis, and Erin Prochnow of the YWCA)

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Meet Mary Fridgen

Meet Mary Fridgen.
Mary is the newest member of our team. She is an administrative associate who handles the receptionist duties. She is the energetic voice you’ll probably hear if you call us. We can already tell she’s a great fit for our team.

Tell us about yourself.
I grew up just outside the small town of Wheaton, Minnesota, on my parents’ farm. I have three sisters and one brother who have blessed me with the honor of being an aunt to four nieces and five nephews who are AMAZING. After high school, I moved to Moorhead and attended M State, graduating with an AAS in administrative assisting. I currently live in Fargo with my boyfriend Augi, and I’m so excited to see what this great opportunity at HTC has in store for me.

 

Heartland TrustMeet Mary Fridgen
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