REQUIRED MINIMUM DISTRIBUTION FROM A RETIREMENT ACCOUNT

What is an RMD?

After a certain age, you will have to begin taking Required Minimum Distributions (RMD) from your retirement account annually. This amount is calculated based on your age and retirement account balances, distributed each year and taxed as income.

Do I have to take an RMD every year?

Yes, as long as your tax deferred retirement account has funds

What is a Qualified Charitable Distribution (QCD)?

A Qualified Charitable Distribution allows you to make a tax-free contribution directly from your tax-deferred retirement account to a charitable organization while reducing your RMD. Instead of receiving your RMD, paying taxes and making charitable gifts, the QCD allows you to make the gift before and without paying taxes.

How can a Qualified Charitable Distribution affect my taxes?

Every dollar gifted through a QCD, reduces the amount of RMD remaining for the year. RMDs are taxed as income so, reducing your RMD directly reduces your taxable income.

Am I obligated to continue a QCD after beginning?

No. Once they begin, RMDs will continue throughout your lifetime, but you are under no obligation to continue or make recurring gifts with a QCD. Any support is appreciated!