Considering IRA Required Minimum Distributions and Charity

From the SLOTT Report:  If you are an IRA owner and are over age 70 1/2 this year, you have to take your required minimum distribution (RMD) by December 31, 2013. If you want to give money to charity this year and haven’t yet taken your IRA RMD, you should consider giving your RMD directly to the charity.

A provision in the tax code known as Qualified Charitable Distributions (QCDs) allows you to give your IRA distribution directly to charity and save taxes.  Here’s how it works.  Normally, any IRA distribution, including your RMD, is taxable to you, but QCDs are tax-free as long as certain rules are followed.

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Davis & Hodgdon Associates has been assisting businesses and individuals in the Burlington Vermont Metro area for more than 20 years. If you have any questions or concerns please feel free to call 802.878.1963 or email [email protected].

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