573-449-5313 info@labrunerie.com
      Another Autumn is upon us as Starbucks reminds us with their Pumpkin Spice Latte.  We wanted to remind you that if you are age 70½ or older, IRS rules require you to take Required Minimum Distributions (RMDs) each year from your tax-deferred retirement accounts.
       
      This additional taxable income may push you into a higher tax bracket and may also reduce your eligibility for certain tax credits and deductions. (Please consult your tax professional for details on your particular tax situation.)  To eliminate or reduce the impact of RMD income, those who are charitably inclined may want to consider making a Qualified Charitable Distribution (QCD). A QCD must be made directly from your IRA payable to the qualified charity. 

       

      If you make a withdrawal and later donate the same amount to the charity the withdrawal will still be taxable.  So, if you would like to make a Qualified Charitable Donation (QCD) from your IRA please let us know before your scheduled RMD withdrawal and if possible no later than October 15th so we have time to file your donation request with your IRA custodian.
       
      It is important to note:
       
      The IRA custodians are not able to reverse your withdrawal and redirect it to a charity once a normal RMD has been processed.  Additionally, it becomes difficult to get these withdrawals processed and documented correctly if we wait later in the season.

      What is a Required Minimum Distribution?

      -A Required Minimum Distribution (RMD) is an IRS mandated minimal taxable withdrawal individuals 70 1/2 years or older must take each year from their retirement accounts.  The IRS calculates the required withdrawal amount based on age and value of the retirement account as of December 31st of the year prior. 

       

      Can I donate my Required Minimum Distribution to a charity?
                      -Yes, Qualified Charitable Donations will count towards your RMD according to IRS Publication 590-B
                                      -Some account types are excluded including beneficiary accounts so please contact us for detailed information if interested.- please note that RMDs from a 403b account are not allowable as Qualified Charitable Donation so converting to an IRA would be necessary prior to filing a QCD request.
                      -Qualified Charitable Donations must be made directly from the trustee (ex. TD Ameritrade) to an organization qualified to receive tax deductible contributions.
                      -The limit for Qualified Charitable Donations is $100,000 per person each year.  (Married filing jointly-you can each donate $100,000.)
      Your business means a great deal to all of us here at LaBrunerie Financial. If you have any questions or would like to set up an appointment, please contact our office at 573-449-5313 or email questions if you like.  Thank you for choosing our firm for all of your investment needs!
       
      Enjoy the rest of your day!

       

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