From a tax perspective, active income is subject to federal income tax, as well as payroll taxes such as Social Security and Medicare. And depending on your income level, you may also be liable for state income tax. The tax rates for active income are typically progressive, meaning that the...
000) directly from your traditional IRA to charity, rather than receiving the RMD and paying tax on it first, the donation still counts as your RMD, but it does not add to your taxable income and goes to the charity tax-free. This has the added benefit of not only reducing...