The ABCs on RMDs and QCDs in CARES

That’s shorthand for: the logistics on Required Minimum Distributions and Qualified Charitable Distributions in the Coronavirus Aid, Relief, and Economic Security Act (in other words, a mouthful!).

The CARES Act, signed into law on March 27, 2020, waived the requirement to take any Required Minimum Distributions (RMDs) for 2020. In addition, a rollover period was enacted so that any RMD taken before March 27 can be rolled back to the account without penalty through August 31, 2020.

These temporary changes may leave you wondering whether you are still able to make a Qualified Charitable Distribution (QCD) from your IRA or other eligible retirement plan. The answer is: yes! 

Even though the requirement to take an RMD has been suspended for the year, you are still able to use these assets to make charitable gifts of up to $100,000 per person, per year. And since the QCD is not taxable to you, making the gift will bypass any income tax on the gift. Retirement asset QCD gifts remain smart options for people looking to support their community and the causes they care about during this time of incredible need in the Quad Cities, and across the country.

The Quad Cities Community Foundation is here to support you in setting up a Qualified Charitable Distribution, and many other gift options, to care for our region now—and in the future. To learn more, call Anne Calder, vice president of development, at (563) 326-2840 or email AnneCalder@QCCommunityFoundation.org. We are happy to discuss the details by phone, or Zoom.