Hello Fellow Taxpayers,
I am taking a short break to share some information with you that could affect your tax return.
“I take an RMD. And I heard there is a potential tax break when donating, even if I don’t itemize.”
What is an RMD (yes, another acronym)?
Required Minimum Distributions, often referred to as RMDs, are amounts that the US federal government requires one to withdraw annually from traditional IRAs and employer-sponsored retirement plans once they reach a certain age.
What is a qualified charity?
A charitable organization or a charity is a non-profit organization (NPO) whose primary objectives are philanthropy and social well-being (e.g. charitable, educational, religious, or other activities serving the public interest or common good).
What does and RMD and charitable contributions have to do with each other?
In this video, I briefly explain the RMD and how you could benefit from a direct transfer and possible save on your taxes.
Until next week,
Jeffrey “back to tax prep” Schneider