Abby Axelrod-Wunderman, Director of Charitable Giving
The CARES Act was designed to provide relief to Americans who are struggling due to the economic, emotional, and physical toll COVID-19 is causing. The goal of suspending RMDs is to give people more control over their funds and to reduce having to sell investments and create a taxable event during a time of emergency.
The CARES Act allows IRA account owners to skip both their 2019 and 2020 required minimum distribution (RMD), if it was their first year and had not yet made an RMD by April 1, 2020.
How could RMDs in 2020 make a difference?
For one, you could provide support to nonprofit organizations if you are not concerned about keeping your RMDs. An individual can still do a qualified charitable distribution (QCD) from their IRA if they are age 70.5 or older and send money directly to a qualified charity. Even though RMDs are not owed in 2020, and their amount will not offset any future RMDs, except for the fact that their account balance is now lower, nonprofits in our community are in immediate need of the added support.
If you are in a position to take from your IRA account and give to a nonprofit, your impact would be felt tenfold at a time like this. Your accountant can answer your specific questions about the remaining provisions in the CARES Act.
Consider supporting the Community Foundation Funds (as listed below). Please call on us to assist you in making your gift to one or more of these funds.