Now that tax season is in full swing, we would like to remind you of a potential tax saving opportunity for your Required Minimum Distribution.
Required Minimum Distributions (RMDs) are an annual requirement on all Traditional Individual Retirement Accounts (IRAs) after you reach age 70 ½. This distribution will typically show up as taxable income on your tax return. However, if you do not need the extra cash, you have the ability to contribute your RMD directly to a qualified charity for up to $100,000. Not only does the charity benefit from the donation, but donating your RMD directly allows you to exclude the distribution from your taxable income (win-win). This alternative is called a Qualified Charitable Distribution (QCD).
Please click here for an article explaining Qualified Charitable Distributions. If you feel like this is an option that would work well for you or if you have any questions, please contact us and we would be happy to walk you through the details of making a QCD.
This information has been obtained from sources deemed to be reliable but its accuracy and completeness cannot be guaranteed. Please note, changes in tax laws may occur at any time and could have a substantial impact upon each person's situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax matters. You should discuss tax matters with the appropriate professional.