The year following an individual’s 70 ½ birthday they are required to distribute a minimum amount of their IRAs. Often times they may not need this distribution and it can increase their Adjusted Gross Income. This in turn can push them into higher tax brackets and limit certain deductions, phase outs, and exemptions. If you are considering charitable giving in 2016, consider a Qualified Charitable Deduction or QCD from your retirement account. This can satisfy your RMD requirement, and at the same time lower you’re AGI. Not to mention the benefits to your local charity and creating a legacy.
QUESTIONS TO PLAN AROUND
THINGS TO CONSIDER
Slott, Ed. “Charitable Giving Goes Permanent.” Financial Planning February 2016: 58-59. Print.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.