When we least expect it, life sets us a challenge to test our courage and willingness to change; at such a moment, there is no point in pretending that nothing has happened or in saying that we are not yet ready. The challenge will not wait. Life does not look back. 

- Paulo Coelho
First Look at the Coronavirus Preparedness and Response Supplemental Appropriations (CARES) Act – What May Affect You

James Moyer, CFP ®
Investment Relationship Manager
Schneider Downs Wealth Management Advisors, LP
President Donald Trump signed into law the Coronavirus Stimulus Bill on March 27, 2020. At over eight hundred pages long, the bill offers much-needed support for American citizens and businesses. The bill includes stimulus checks for Americans if you meet certain criteria, support for small businesses, the ability to skip your 2020 required minimum distributions (RMD), changes to tax benefits for charitable donations, and much more. Here we will highlight the RMD and charitable deduction changes. Schneider Downs & Co. is providing detailed information about this legislation. To view those updates, please click here to visit their Coronavirus Resource Page .

Required Minimum Distributions for 2020

If you have a retirement account and are required to take a RMD in 2020, you no longer have to do so. The stimulus bill provides a one-time exemption for your 2020 RMD.

The RMD is calculated by taking the prior year ending value of your retirement account divided by a factor based upon your life expectancy. Congress recognizes that it could be problematic to take your RMD now. Why? In 2019, equity and bond markets did very well. The calculation requires that you use that high value; however, we all know that the markets have taken a hit since then. Using the December 31, 2019 value may cause many individuals to sell positions that are currently down in order to meet the requirement. If you already took your RMD, or raised the cash to do so before the equity market began to fall, you should not be in that position. You do still have a choice, though, if you do not need your IRA distributions to meet your cash flow. You may want to avoid taking all or some of the dollars out of your IRA this year. Everyone’s personal situation is different, so now is a good time to review your IRA distribution with your financial advisor to determine what options are available and what the best strategy is for you. 

Charitable Deduction Changes

The stimulus bill incentivizes Americans to help others in need. Prior to the legislation, if you gave a public charity a cash donation, you could only deduct a donation up to 60% of your adjusted gross income and you must be able to itemize your deductions. In 2020, taxpayers can deduct cash donations up to 100% of adjusted gross income to public charities. Please note that this change does not apply to contributions to a donor advised fund (DAF) or a private charity.

The bill also includes a charitable deduction benefit that almost everyone who does not itemize deductions can claim on their tax return. If you claim the standard deduction and make a cash donation to a public charity, you can deduct a gift of up to $300 against your gross income. The donation has to be a cash gift to a public charity. This deduction also does not apply to private charities or DAFs. 

We hope you and your family stay safe during this unique and challenging time period. We will continue to provide updates or links that we believe you and your family will find useful.
Curious about your eligibility for the 2020 Recovery Rebate that is part of the CARES Act? 
Schneider Downs & Co. has written an article that may interest you.
Working at home is full of challenges, but it also has some benefits.

We wanted to share with you our team's biggest challenges, and would love to hear from you in the poll below!
Our Biggest Challenges Working From Home
Despite the challenges, here are some positive benefits that our team has shared.
What have you found to be your biggest challenge, and your greatest benefit, of working at home?
Biggest Challenge
Balancing Work and Family Needs
Technology or Communication Issues
Adjusting to Lifestyle Changes
Lack of Availability of Essential Items
Favorite Benefit
Spending Time with Family & Pets
No Commute or Rush Hour Traffic
Activities that You Normally Don't Have Time For
Rest and Relaxation
Have You Missed Any of Our Recent Communications?
Behavioral Investing Challenges

SDWMA's David Brinkman shares his thoughts on the most common investor behavior challenges with a reminder to keep a long-term perspective.

Previous Capital Market Drawdowns Provide Insight to Our Road Back

SDWMA's David Brinkman provides insight and data on previous market drawdowns and recoveries, and the importance of rebalancing throughout difficult times.

COVID-19 Investment Update

SDWMA's Jason Staley contributes current market observations in comparison to historical capital market movements.

From Our Kitchen to Your's

Shelter in Place
Crock Pot
Chicken Chili

Courtesy of
Amber Cranmer
SDWMA's Operations Specialist
16 oz. Salsa Verde
16 oz. Can Diced Tomatoes
(2) 15 oz. Cans White Beans
14.5 oz. Can Chicken Broth
14 oz. Corn
1 Onion, Chopped
1/2 tsp. Oregano
1/4 tsp. Cumin
3 Chicken Breasts, Chopped
Salt & Pepper to Taste

Combine all ingredients in slow cooker, and cook on low for 6-8 hours.

Helpful Links to Make it Through COVID-19
Interested in helping COVID-19 efforts?
Missing Your Family and Friends?

Follow the link below for a free virtual chat program!
Schneider Downs Wealth Management Advisors, LP (SDWMA) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). SDWMA provides fee-based investment management services and financial planning services, along with fee-based retirement advisory and consulting services. Material discussed is meant for informational purposes only, and it is not to be construed as investment, tax or legal advice. Please note that individual situations can vary. Therefore, this information should be relied upon when coordinated with individual professional advice. Registration with the SEC does not imply any level of skill or training.
Schneider Downs Wealth Management Advisors, LP
1 PPG Place, Suite 1700
Pittsburgh, PA 15222