Make the RMD from Your Traditional IRA, Tax-Free
You probably know that once you turn 70 ½, the tax code requires you to withdraw a tax-code-defined “required minimum distribution” (RMD) from your traditional IRA. The taxable RMD adds to your “adjusted gross income” (AGI) and can increase the taxes on your Social Security benefits.
What you may not know is that you can make your RMD
tax free by using a “qualified charitable deduction. (QCD)!”
That’s right. If you contribute to your church, a school, or other 501(c)(3) charity, you and the charity can both benefit big time.
How? You’ll find out when you read my new article titled Tax Tips: Make the RMD from Your Traditional IRA, Tax-Free.
Three ways our fact-filled article can help you:
- We’ll tell you three ways you can come out a big winner.
- The QCD donated money escapes income taxes and also doesn’t count as adjusted gross income (AGI).
- The QCDs can satisfy all or part of your RMD requirement.
- The QCD doesn’t bump up against the 50-percent-of-AGI- ceiling that applies to cash donations.
Want full details? Read the full article.
- We’ll explain two important requirements you have to meet. The IRS has issued very specific guidance about which charities qualify for your gift and has also ruled on who must make out the check or transfer the funds payable to the charity. We’ll explain these rules in detail when you read the full article.
- We’ll list the three enormous benefits of the qualified charitable deduction strategy. I’m talking about a “double dip” benefit you won’t want to miss, plus a way to save on Medicare premiums and pay less tax on Social Security benefits. You’ll get the whole story when you read the full article.