RMD Qualified Charitable Distribution

A qualified charitable distribution is a tax-efficient way for IRA owners subject to RMDs to donate to nonprofits. If you are subject to Required Minimum Distributions (RMDs) from your IRA, you can reduce your taxable income by making a direct charitable donation to an organization, such as SAF.

Owners of an IRA become subject to Required Minimum Distribution rules in the calendar year in which they turn 70½ and must make their first withdrawal by April 1 of the following year, as well as take RMDs every year afterward. By sending the RMD amount (or any part of it) directly to a non-profit organization through a qualified charitable distribution, you can support SAF, reduce your taxable income and still take the standard deduction. The result is a tax return with less reported income and potentially lower Medicare income-based premiums, depending on your past income. Please consult your tax advisor and investment advisor for details and instructions.