Maximize Your Income Tax Savings: Use RMD’s for Charitable Giving

How old are you?? Age has benefits – and you can maximize your tax savings by donating your RMDs to nonprofits like RARE!

If you’re 73* (or older) you likely know that you must take a Required Minimum Distribution (RMD) from your IRA, 401(k), or 403(b).

*Also applies to those who will turn 73 by the end of the calendar year.

While this distribution may be taken at any time, many people have a tendency to procrastinate and only remember when the year is winding down. If this sounds like you, your delay might work in your favor!

Distributions from IRAs, 401(k)s, and 403(b)s are typically taxable — unless the funds are donated directly to a Qualified Charitable Organization (QCO), like RARE.

In this case, the distribution is tax-free for both you and the charity.

Known as a Qualified Charitable Distribution (QCD), it’s a win-win: you fulfill your RMD requirement while supporting a cause you care about.

Even if you’re only 70½ years old and RMDs aren’t required yet, you can still take advantage of a QCD from your IRA, 401(k), or 403(b).  No need to wait until age 73 to reduce your tax bill!

This is especially beneficial for those who take the standard deduction when filing their taxes, as it allows you to reduce your taxable income without itemizing.

Since everyone’s financial situation is unique, we recommend consulting with your tax advisor to ensure this strategy fits your needs.

Thank you for considering a donation to RARE — your generosity makes a difference!

Need more info?  Contact us for more information or for assistance to complete this donation.