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.)