RMD disbursement to charity
I just listened to your talk for Aetna and got some good information. Thanks I have been told I can give family members a certain amount as part of my RMD withdrawal without either having a tax liability. Is this correct?
I do give certain charities a portion to reduce my tax costs but then have the rest deposited in brokerage account and write the checks from there. What would be the best way to handle these gifts. Thanks
Terry Says
No, you can only give to registered charities as part of your RMD, avoiding taxes! And the limit is $100,000 per year! Of course, you can direct smaller gifts and they are not taxed and are considered part of your RMD.
You are doing it correctly for the balance — taking the RMD (minus tax withholding) and putting it into your MM account.
You can give up to $16,000 per year to any recipient without any estate tax implications. (And Estate Taxes only apply if your estate is sell over $12 million). But these annual gifts are not a tax deduction to you — nor are they taxable to the recipient.
Again, you can only deduct gifts to recognized charities.
