As we head into the final days of the 2022 tax year, there are a couple of items that you should keep in mind if you need to take your Required Minimum Distribution (RMD). These need to be completed by December 31.
For retirees over age 72, make sure you have completed the RMD from your Traditional IRA, SIMPLE IRA, SEP IRA, or 401(k) accounts. Calculators to help you calculate your RMD are available from the IRS, AARP, as well as other sources.
Also consider doing a Qualified Charitable Distribution (QCD) from your taxable retirement account. This is a brilliant solution that allows someone subject to the RMD to donate all or part of that amount to a qualified charity. For individuals, it's up to $100,000 and for couples, it's up to $200,000. Making that donation directly from the taxable account satisfies the distribution requirement, but does not increase the individual’s adjusted gross income, nor add to their tax bill. The QCD can be made at any time throughout the year, just as long as it is completed by December 31 and taken before your RMD.
As always, consult with your financial advisor or tax professional before making any final decision on your tax strategy.
Best wishes for a joyous holiday and a prosperous new year.
Information in this material is for general information only and not intended as investment, tax or legal advice. Please consult the appropriate professionals for specific information regarding your individual situation prior to making any financial decision.
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