Required Minimum Distributions From Individual Retirement Accounts

1. If you are age 73 and older, the IRS requires you to annually withdraw a pre-calculated amount from your Individual Retirement Account (IRA).  This withdrawal is known as a Required Minimum Distribution (RMD).
2. The annual RMD is taxable to you.  However, you may avoid paying taxes on the RMD if you directly donate your RMD to a charity (such as: Our Lady of the Rosary Church, Bishop Shanahan High School, Pope John Paul II Catholic School).   This process, known as a Qualified Charitable Donation (QCD), excludes the amount donated from your taxable income if it is payable to a charity.
3. If the distribution is paid to you directly, it will not qualify for the QCD.
4. If you do not take the RMD (even if you do not need the funds) by the RMD deadline, you could be subject to a 25% tax penalty.
5. Contact your tax advisor and financial institution about using the RMD as a QCD from your IRA (Traditional, Rollover, Inherited) to support a charity.
6. Your tax advisor may be able to provide you with other pertinent details that could apply to your taxable circumstances.