Our Newsletters

If you're a retiree aged 70 1/2 or older, consider taking advantage of legislation that allows you to reduce or eliminate the amount of income tax on IRA withdrawals transferred directly to a qualified charitable organization. You can use this tactic even though minimum distributions are no longer required until age 72. Referred to as Qualified Charitable Distributions (QCDs), they can also be used to satisfy all or part of your required minimum distribution. Here's an example: Let's say your required minimum distribution in 2022 is $22,000. If you make a qualified charitable distribution of $15,000 for 2022, you would need to withdraw another $7,000 to meet the amount required for your 2022 required minimum distribution. Required minimum distributions (RMDs) must be taken each year beginning with the year you turn age 70 1/2, whether you are still working or not. The RMD for each year is calculated by dividing the IRA account balance as of December 31 of the prior year by the applicable distribution period or life expectancy. This rule does not apply to your Roth IRAs.