NEW LAW: No Required Minimum Distributions in 2020!

As a part of the CARES Act, Congress has temporarily eliminated most required minimum distributions (“RMD”) from retirement plans during 2020. Check with your financial advisor to see how this might affect you. Even without an RMD, a QCD remains a great way to make tax advantageous contributions. Learn more about the CARES Act


Changes made by the recently passed SECURE Act may or may not have an effect on your retirement tax planning, but should certainly be reviewed in the context of your current or future planning for individual heirs, such as children and other family members.
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If you are age 70½ or older, you will need to plan on having to take your required minimum distributions (RMD) from your IRA each year starting at age 72. If you would like to support Hartford Hospital, you could have distributions made directly from your IRA account and there would also be no income taxed to you on the distributed amount up to $100,000.

In order for a transfer to qualify as a “qualified charitable distribution” (QCD):

  • You must be at least 70 ½ years of age when the gift is made;
  • Transfer must be made directly from the IRA administrator to the Hospital;
  • The gifts from the IRA cannot exceed $100,000 per person ($200,000 total for a couple with separate IRAs) in a given year;
  • They cannot be used to fund a Charitable Gift Annuity, Charitable Remainder Unitrust, Pooled Income Fund;
  • No goods or services can be given in exchange; and
  • The gifts cannot be made to a donor advised fund, a supporting organization, or a private foundation. 

When you reach age 72, these QCD’s can also be used to satisfy your RMD amounts from year to year.

In addition to making annual gifts to Hartford Hospital by means of a QCD, it is also possible for you to name the Hospital as a designated beneficiary of your IRA.  While an IRA will be heavily taxed when received by your heirs, every penny received by the Hospital from your retirement assets will be available for use by the Hospital for the purposes you designate.

If you have any questions, please contact our Director of Planned Giving, Peter H. Congleton at 860-972-2226 or e-mail peter.congleton@hhchealth.org.

We thank you for your generosity and for all you do, and plan to do, for Hartford Hospital.

IRA administrators don’t always include the donor’s name on distribution checks. If you’re planning to make a distribution to us from your IRA, please let us know in advance so that we’ll be able to identify your gift. Thank you!

This information is not intended to substitute for professional legal or tax advice. Please consult with your legal and financial advisors for counsel about your individual situation.