Resilience Fund: IRA Rollover

The Coronavirus Aid, Relief, and Economic Security (CARES) Act has a few provisions that change some of the rules for retirement plans.

• Required minimum distributions (RMDs) are suspended for 2020.

• All RMDs are suspended, including those from inherited IRAs.

• All RMDs are suspended for traditional IRAs of those over age 70 1/2

However, think carefully about whether to take advantage of the suspension.

If the effects of the pandemic dropped you into a lower tax bracket, it might make sense to take the RMD (and perhaps a bit more) out of the IRA this year while you are in a lower tax bracket.

In addition, the 10% penalty for taking early distributions from IRAs and 401(k)s, is waived. This is applied to distributions taken between January 1, 2020 and December 31, 2020. Up to $100,000 of distributions can avoid the penalty.

Considerations of this gift include:

• Cannot be used to fund a life income arrangement (CGA or CRT)

• Must be made directly from trustee of the IRA to Holy Family

• Gift is not deductible, but does avoid federal and most state income tax

For more information, please contact:

Dawn Fleming
Director of Donor Relations and Planned Giving
203-232-0444
dfleming@holyfamilyretreat.org