With the recent passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, most donors do not have a required minimum distribution from their retirement plan in 2020. Minimum distributions will not be required from IRAs, 401(k)s, 403(b)s and most other defined contribution plans maintained by an employer for individuals. Minimum distributions that have already started are still required from defined benefit pension plans and some 457 plans. However, required minimum distributions that would have had to start in 2020 don’t have to start until 2021, including distributions from defined benefit pension plans and 457 plans.
Donors who are 70½ or older, however, can still consider transferring up to $100,000 annually as a Charitable Remainder Distribution from an IRA (traditional and Roth) to Kettering. To start the process, please notify your IRA custodian to make a direct transfer of the distribution amount which counts toward the required minimum distribution. For long term planners, consider designating Kettering University as a beneficiary of your IRA.