Required Minimum Distribution ? a New Way to Give!
If you are 70 1/2 you can give to Iowa Right to Life Education Fund from your IRA and have that contribution deducted from your income.
Required Minimum Distribution (RMD) can be given as a Qualified Charitable Distribution (QCD) and not count as taxable income. This only applies to IRAs and not to 401ks.
With the new larger standard deduction most taxpayers do not itemize. Therefore charitable contributions do not become a deductible item because you pay less in taxes using the standard deduction.
If you are 70 1/2, have to do a RMD, and give to qualified charities you can give all or part of your RMD directly to these qualified charities. This reduces your adjusted gross income by the amount given. If you turned 70 1/2 after December 31, 2019, then the RMD doesn?t start until the year you turn 72.
This contribution has to be done directly through a transfer to the charity by your IRA custodian. It can also be done via check, just have the IRA custodian make it out to the charity and send it!
Check with your tax professional for more details concerning this tax issue.