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REQUIRED MINIMUM DISTRIBUTIONS (RMDS) SUSPENDED FOR 2020

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2020 Investing Principles Taxes April 15, 2020

In response to the coronavirus (COVID-19) pandemic, lawmakers have passed a bill titled The Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 28, 2020, in an effort to reduce the economic and health related impact of the virus.

Included in the law are a few temporary adjustments to IRAs and retirement plans.  Most notably:

Required Minimum Distributions (RMDs) are suspended for 2020

For individuals who have not taken their RMD for 2020, you are not required to do so.  Before year-end, we encourage you to have a discussion with us on what strategy is most appropriate given your income level, liquidity needs, and tax circumstance.  Potential options include:

OptionEffect
Do NothingLower 2020 taxable income
Withdraw +/- IRA RMDRealize 2020 taxable income at your discretion
Convert +/- IRA RMD to Roth IRACreate both 2020 taxable income and future tax-free income source
Charitable gifts from IRACash flows tax-efficiently realign due to qualified charitable distribution

Each client circumstance is unique, therefore no one-size-fits-all solution applies here.  Only through a strategic discussion can we determine which of these options is most appropriate for you.

For individuals who have already taken their RMD, you will include the distribution in your gross income and pay tax on it as originally expected.  However, there is a 60-day window to return the distribution to your Traditional IRA or convert the distribution to a Roth IRA.

We encourage you to contact our office as soon as feasible and schedule an appointment to talk through this temporary RMD suspension with your Financial

brenden ellis

Brenden Ellis is a Wealth Advisor at StrongBox Wealth, where he works with individuals, families, and business owners to make thoughtful financial decisions with clarity and confidence. His work centers on retirement planning, tax-aware investment strategy, and long-term wealth planning, helping clients align their financial resources with their personal and professional goals.

A native of Lee’s Summit, Missouri, Brenden began his career in 2021 in Commerce Bank’s commercial lending training program. He later became a Healthcare Relationship Manager in Kansas City, specializing in physician practices. Through that role, he gained deep experience in physician equity structures, practice financing, and real estate lending. Working closely with medical professionals shaped his understanding of the complex financial lives of high-earning specialists and ultimately led him to transition into private wealth advising.

Brenden earned his Bachelor of Science in Finance from Iowa State University. He currently serves on the Board of Directors for Saint Luke’s East Hospital and lives in Prairie Village, Kansas with his wife, Nicole, and their dog, Theo.

Outside of work, Brenden enjoys racing triathlons and other endurance events, along with cheering on the Kansas City Chiefs and Iowa State Cyclones.

Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the United States to Certified Financial Planner Board of Standards, Inc., which authorizes individuals who successfully complete the organization’s initial and ongoing certification requirements to use the certification marks.