Use your RMD to start a charitable fund
To alleviate the tax burden of required minimum distributions from IRAs, many people are using their RMDs to make qualified charitable distributions (QCDs) to their favorite charities. These tax-free distributions are a financially advantageous way for clients age 70 ½ or older to turn their retirement savings into a meaningful gift. Normally, distributions from a traditional IRA are taxable when received. With a QCD however, these distributions become tax free as long as they are paid directly from the IRA to an eligible charitable organization. Each year, an IRA owner age 70 ½ ...