Today’s year-end planning tip is being intentional with your RMDs:
Next idea is regarding Required Minimum Distributions or RMDs: RMDs apply to folks who are 73 or older. If you are subject to RMDs and if you don’t take them out before the end of the year, there will be a penalty. If you don’t need your RMDs to pay your living expenses, explore other options like giving to charity.
A good Planning Tip: is to utilize Qualified Charitable Distributions, which allows you to give up to $105,000 from your IRA directly to charity without needing to pay tax on these monies and they count towards your RMD.
In my next video, I will continue on this point of year-end charitable giving strategies.