1. Welcome to VegasMessageBoard
    It appears you are visiting our community as a guest.
    In order to view full-size images, participate in discussions, vote in polls, etc, you will need to Log in or Register.

Lets discuss RMDs and charitable donations.

Discussion in 'Non-Vegas Chat' started by Joe, Jul 13, 2021.

  1. Joe

    Joe VIP Whale

    Joined:
    Sep 11, 2009
    Messages:
    15,763
    Location:
    Wisconsin
    Trips to Las Vegas:
    175
    I'm fairly versed on what our upcoming RMDs at age 72 will involve but I have a question. According to my guy at Fidelity, I cannot withdraw our RMD and put it in our charitable trust to be distributed as I see fit and still receive the tax benefit. What ever percentage we decide to donate to charity must go directly to the charity with no middleman. Anybody have a way around this? I have time yet, but I am always planning ahead.

    After a lifetime of tax deferred saving for retirement, Uncle Sam now wants his.
     
  2. Chuck2009x

    Chuck2009x VIP Whale

    Joined:
    Apr 5, 2009
    Messages:
    11,295
    Location:
    Boston
    Trips to Las Vegas:
    27
    https://www.irahelp.com/

    You can try entering RMD Charitable as keywords in the main search box and see if you get a result from the main content.

    Or go to the Discussion Forum (Resources / Discussion Forum). It has a primitive user interface but has a crackerjack tax advisor (Alan-iracritic) in there. I'm sure this question has been covered. There's no search functionality in the discussion forum, but you can scan a few pages of existing questions and if you don't find anything, set up a login, ask your question and you'll probably get a pretty quick reply.
     
    • Informative Informative x 1
  3. cjcjcj

    cjcjcj VIP Whale

    Joined:
    Oct 18, 2016
    Messages:
    2,360
    Trips to Las Vegas:
    19
    2022 First Escape
    • Informative Informative x 1
  4. The Rumor

    The Rumor VIP Whale

    Joined:
    Jul 28, 2015
    Messages:
    4,722
    Trips to Las Vegas:
    25
    Well, yeah, that's the whole point - they want you to start paying taxes, they don't want you to roll it to another tax deferred vehicle.

    There's also something else to consider here - when you make the direct charitable payment (a QCD) in lieu of taking an RMD, there's a Part B benefit. Specifically, normally, when you take an RMD from a non-Roth account, you're generating income that gets caught in the income used to determine Part B premiums. If you make a QCD, that is not considered income in the Part B test, nor do you have to itemize your deductions on your tax return in order for this to reduce your Federal taxable income. Effectively, it's as if the money never came to you for tax purposes.

    The tax code is strongly pushing you to make your charitable payments now via QCDs versus managing a charitable trust.

    Also, it has to come from an IRA, not a 401(k) to be a QCD (if I remember correctly.)
     
    • Informative Informative x 3
    • Like Like x 1
  5. Joe

    Joe VIP Whale

    Joined:
    Sep 11, 2009
    Messages:
    15,763
    Location:
    Wisconsin
    Trips to Las Vegas:
    175
    Thanks for all the useful information and links! :thumbsup:
     
  6. coyote

    coyote Tourist

    Joined:
    Aug 8, 2013
    Messages:
    15
    Trips to Las Vegas:
    50
    Sounds like there is a serious effort to change the RMD next year from 72 to 73 years old and even later down the road.