Ask Terry Questions Charitable Contribution of RMD

Charitable Contribution of RMD

By Terry Savage on July 16, 2023 | Wild Card

Will direct donation of a portion of my RMD to my church reduce the tax I pay?

Terry Says

Rules for charitable contributions from RMDs:
Taxpayers age 70 ½ and over may donate up to $100,000 each year from their IRA to qualified nonprofits. This donation can include the RMD amount.
Donating the RMD money (or more) to charity keeps it out of your taxable adjusted gross income.
You don’t pay taxes on RMDs from a traditional IRA when you use them to make a qualified charitable donation (QCD).
If you give your RMD payout directly to charity, your contribution will be excluded from your taxable income. You won’t get a charitable deduction on your tax return.



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