The tendency is to take the required minimum distribution from the IRAs and more from the non-retirement accounts.
FORBES: Make Sure To Sell The Right Stocks At The Right Time In Retirement
Earnings on Roth IRA assets are tax-free if qualified, and there is no required minimum distribution (RMD) amounts.
Similarly, some taxpayers made their Required Minimum Distribution in early or mid December, and wish they could now redirect the money to charity.
If you have not yet taken your 2010 Required Minimum Distribution, this donation to charity may satisfy that requirement in whole or in part.
Withdrawals of the required minimum distribution (RMD) must start on Dec. 31 of the year after inheriting the IRA. These are taxable, but far less so than if a lump sum was taken.
FORBES: Options to Stretch an IRA Can Be Advantageous for Beneficiaries
In 2009, in response to the Great Recession, Congress suspended the IRA required minimum distribution rules (the RMD holiday) for one year for older taxpayers (70 and a half or older) so they could keep their money in the account and let it grow tax-deferred.
FORBES: IRA Penalty Relief For Great Recession Hardship Withdrawals Proposed
The donation would count against the minimum required distribution they would otherwise be required to take.
FORBES: Two Ways Congress Should Spur Charitable Giving For Sandy Relief
What if Congress extends the charitable IRA rollover retroactively, or after many folks have already taken the minimum required distribution for 2012?
FORBES: Two Ways Congress Should Spur Charitable Giving For Sandy Relief
Obviously, the smaller amount he would receive by using the Minimum Required Distribution method minimizes his tax obligation and maximizes how long his retirement account lasts.
FORBES: How To Take Money From Your IRA Early--Without A Penalty
If they donate cash to charity between now and Jan. 31, they can have it count to satisfy all or part of their 2012 minimum required distribution.
FORBES: Fiscal Cliff Deal Allows Giving IRA Assets To Charity
应用推荐