Qualified Charitable Distributions
Today we are continuing our conversation around charitable planning. The rules around Individual Retirement Accounts are forever in flux. One of the more intricate mandates within IRA management is the Required Minimum Distribution (RMD) — where the IRS requires one to being “spending” or “distributing” funds from their IRA. These distributions face the most penal tax structure – ordinary income. However, there's a silver lining for those that wish to harness their RMDs for good — Qualified Charitable Distributions (QCDs). Setting the Scene with RMDs Understanding RMDs is important and something that requires an investor’s attention. — they are the IRS's way of ensuring that tax-deferred retirement accounts are used for what they were designed for: the financial support of your retirement. But this regulation, while rooted in good financial sense, comes with its complexities and tax implications. Primarily it is not voluntary. The distributions are required per their moniker. [...]