Charitable Contributions Using RMD’s

charitable-contributions

With the new tax law changes from the 2017 Tax Cut & Jobs act, many Americans will be utilizing the increased standard deduction rather than itemizing. Those of you who are subject to the Required Minimum Distribution (RMD) rules can make distributions to your favorite charities from your IRA.

This is a savvy strategy that will reduce your RMD dollar for dollar (up to $100,000) and thereby reduces the taxable amount of your overall distribution. Charitable contributions using RMD’s reduces your gross income/taxable income, lowering your tax liability and benefiting the qualified charity/charities of your choice. 

Keep in mind that you should keep track of how much of your RMD goes to charity, because at this time the 1099R you receive will not identify the charitable distribution. You will need to report the transaction as not taxable. Rethinking your strategy to minimize your tax bill takes a little creativity and you can turn your good deed into a win for yourself by minimizing your tax bill under the new laws.

As always, we are here to help. If you have questions about your charitable contributions using RMD’s or the new tax law changes, contact us today to schedule an appointment.

How to Disaster-Proof Your Finances
Designating Beneficiaries & Owning an Inherited Re...
 

Comments

No comments made yet. Be the first to submit a comment
Already Registered? Login Here
Guest
Tuesday, 11 August 2020

By accepting you will be accessing a service provided by a third-party external to https://www.attentiveinv.com/

Due to renewed State orders for shelter-in-place we will be modifying our office operations. We will be suspending services at our physical office for the public. However, we are available to you via web meeting (zoom), email and telephone (Phone lines have been forwarded to our personal cell phones) during regular business hours. We will be able to fully service all your investment needs with no interruption.

You may drop contribution checks at our office through the mail slot or they may be mailed directly to TD Ameritrade (address listed below). Please be sure to notate your account number on the check.

TD Ameritrade
PO BOX 650567
Dallas, TX 75265-0567

Rest assured that we will continue to monitor your investments and market conditions on an ongoing basis with no interruption. Should you have any questions or concerns please feel free to contact us.

We will navigate this crisis as best we can, coming together and making shared sacrifices. We hope that we can help to slow down the effect of this virus together and solve this swiftly. We also wish everyone well and would like to extend our gratitude for your patience during these trying times. Continue to watch for updates from us.