Direct Distribution to Charity:If you are 70½ or older, you have the option to make a qualified charitable distribution (QCD) from your IRA directly to a qualified charity. The amount of the QCD can be used to satisfy your RMD for the year, up to certain limits. When reporting your ...
Qualified charitable distributions are reported as a normal distribution on Form 1099-R for non-inherited IRAs. On Form 1040, please state the amount of your distribution in line 4a. Then, in line 4b please enter the difference between the total RMD taken and the QCD given. For example,...
But there’s a way that you can put these distributions to good use andreduce your tax burden.Given the impact thatrequired minimum distributions (RMDs)can have on your tax bill, it may be worth creating a long-term strategy with thequalified charitable distribution (QCD)rule. Key Take...
If you’re on Medicare, the Social Security Administration automatically deducts the Medicare premium from your Social Security benefits. You need to use the “gross” Social Security benefits before deducting the Medicare premium and it should be an annual number, not monthly. You can find this...