RMD distribution to Grandchildren
I am turning 73 in June, RMD will begin. How do I gift this money to my grandkids/parents to lessen the tax burden. As information I am in the Thrift Savings Plan (TSP) and the estimated amount is $1,551 a month or $18,612 a year. Is cash an option? Or what are my options?
Terry we listen to you all the time on WGN radio. Thank you for taking my question.
Terry Says
Sorry, there is no way to avoid ordinary income taxes on your RMD!
If you don’t need the money, you can gift it to your grandchildren. But that gift won’t be tax deductible.
So just take the RMD, and ask your custodian to withhold income taxes from the payment.
