Ask Terry Questions Charitable RMD

Charitable RMD

By Terry Savage on November 16, 2023 | Financial Planning / Retirement

I am not yet 65, but take RMD every year since 2019 as a result of inheriting an IRA. Amounts to about $30/yr. Two things. 1)Pushes us up in tax bracket and creates IRMAA obligations for my spouses medicare payments. 2) seemingly cannot use RMD for charitable donations as I understand that ONLY RMD takers 72 and older can avail themselves of using their RMD for charity and receive the associated tax benefit. I don’t believe you are a tax professional, but can you confirm this is correct? I’d love to find out the above is incorrect. Happy Thanksgiving!

Terry Says

You must be 70-1/2 or older to use this strategy of charitable distributions from an RMD — And yes, the age limit is lower than the current RMD limit of age 73.
Here is a link to the IRS page explaining that.

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