DONATE YOUR REQUIRED MINIMUM DISTRIBUTION (RMD) TO A CHARITY OR CHARITIES
For taxpayers age 72 or older who need to withdraw their RMD from their IRA, they have the ability of utilizing a Qualified Charitable Distribution (QCD) of up to $100,000 to one or more qualified charitable organizations. This distribution counts toward satisfying their RMD and will not be taxable income to the taxpayer. The benefit of this strategy is that it lowers a taxpayer’s adjusted gross income (AGI) which may allow for larger deductions that are subject to AGI limitations, such as medical deductions and charitable contributions. Additionally, this provides a reduced amount of income the government uses to compute the cost of your Medicare Part B premiums.