When you reach 70 ½ years old, you must start taking Required Minimum Distributions (or RMDs) from your IRA. This can’t be helped… but did you know that you could donate your RMD to charity instead of receiving the income?
IRS allows for an otherwise taxable distribution from an IRA (other than an ongoing SEP or SIMPLE IRA) to be donated to a charity rather than being paid out to the owner. This charitable donation can satisfy your required minimum distribution for the year, and it can help reduce the total income you have to claim on your tax return. More detailed information can be found in IRS Publication 590-B, at https://www.irs.gov/publications/p590b.
If you are a retired member of the Clergy and have questions about correctly donating your RMDs to charity, Clergy Financial Resources offers Pro Advisor Support. Just visit our website at https://www.clergytaxnet.com/resources/proadvisor/ and set up a Pro Advisor consultation.
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
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Maple Grove, MN 55369
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