Our apologies! Our communication on November 6th stated that withdraw of RMDs are required. However, this requirement has been suspended for 2020:
Required Minimum Distributions (RMDs) are now suspended for 2020 for everyone with IRAs and 401(k)-type accounts (but not defined benefit plans) as a result of the Coronavirus Aid, Relief, and Economic Security (CARES) Act that became law March 27, 2020.
Normally, beginning at 70 ½, if you have an IRA you must withdraw a Required Minimum Distribution (RMD) annually. This is not a requirement for 2020.
However, if you choose to make a withdrawal, that income is not taxed if you contribute it to a qualified charity such as Shadowcliff. This Qualified Charitable Distribution (QCD) is a direct transfer of funds from your IRA to the qualified charity. It enables you to support Shadowcliff with your gift and enjoy a significant tax break, even if you take a standard deduction.
For more information on the advantages of a QCD, click here for more information and consult your tax advisor.
I am excited to share with you that I am hosting a 45-minute webinar on November 18, 2020 at 12:00 MST where I will discuss the basics on how nonprofit funding works, tips on how to vet nonprofits, and the differences in making gifts direct to charity, through a donor-advised fund, through a community foundation, or through a private foundation.
I will also be discussing changes the SECURE Act made to inherited IRAs and how charitable techniques may help offset the tax implications.