All posts by Joanna Lardin

Deadline Fast Approaching re: Required Minimum Distributions

The Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020, changed the 2020 required minimum distribution (“RMD”) rules for any defined contribution retirement plan subject to RMD payments (such as an IRA or 401(k)). If you would have otherwise been subject to a mandatory RMD, you may choose to forgo those distributions for the 2020 year. This does not include an RMD to an individual who attained 70 ½ in 2019, who is required to take an RMD by April 2020. However, this otherwise applies to any required minimum distribution, whether the retirement account is your own or is an inherited retirement account.  Continue reading Deadline Fast Approaching re: Required Minimum Distributions

Charitable Contributions Under the CARES Act

On March 27, 2020, the bipartisan Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. In order to encourage charitable contributions at this unprecedented time, the CARES Act made some valuable changes to the way those contributions are treated on your tax return. The first change worth highlighting is the treatment of charitable contributions up to $300 as an above the line deduction for the 2020 tax year (possibly $600 for a married couple). If you do not itemize your deductions, you are eligible to take this charitable deduction. Additionally, if you itemize your deductions and make a charitable contribution of cash directly to a public charity, you are not limited to 60% of your adjusted gross income (AGI) for 2020, but instead may deduct up to 100% of your AGI for this year. Continue reading Charitable Contributions Under the CARES Act