A Tax Strategy to Get More from RMDs
Submitted by Fountain Financial Associates | Financial Advisors on February 13th, 2019Posted by Buck Beam in the FFA Spring 2019 Newsletter
If you have reached the magic age of 70 ½ and regularly donate to charities, there may be a way for you to stretch the impact of your IRA required minimum distribution.
Changes brought about by recent tax reform make the use of Qualified Charitable Distributions, or QCDs, attractive to even more taxpayers. A QCD is a distribution from an IRA that is transferred directly to a qualified charity. The distribution is tax-free, although no income tax deduction is allowed. This is a great way for clients with RMDs to avoid the necessity of receiving a taxable distribution.
