Roth & Traditional IRA Distributions to Charities
By Bill Henning
If you have an IRA and have reached 72 years of age, congratulations! Now, the government requires you to start taking money out of these tax deferred accounts. This is a Required Minimum Distribution (RMD). You will be taxed on these mandatory withdrawals every year thereafter. However, each year you have the option to transfer some or all of that year’s RMD to a charitable organization, such as your church, FCC. The amount of the RMD that you give directly to charity is not taxable for the IRS income tax filing. Talk to your tax profession about how this works and consider magnifying your charitable gift while reducing your taxes.