Required Minimum Distribution Reminder

Starting at age 72, the IRS requires that you begin to take Required Minimum Distributions (RMDs) from your Traditional or Rollover IRA on an annual basis. If you own an Inherited IRA, you are likely also subject to take RMDs.

You are permitted to use your RMD to make charitable contributions equal to the amount of your RMD up to $100,000. This has become a popular strategy under the Tax Cuts and Jobs Act of 2017 for those who no longer itemize their charitable contributions. For those who can no longer take advantage of itemized deductions, using RMDs for charitable contributions helps to preserve the tax benefits. If you are currently writing qualified charitable distributions, please keep in mind they must clear your account before December 31 to be counted in the current year. To mitigate any issues, we recommend you send out all checks prior to November 30.

 Did you Know?

  • Required withdrawals from a retirement account in a calendar year are based on the account’s ending balance in the prior year. So, the size of your RMD in 2022 was set on December 31, 2021.

  • RMDs are based on IRS life-expectancy tables. At age 72, when withdrawals begin, 3.65% must be withdrawn. At age 80, the amount increases to 4.95%. At age 90, it moves to 8.2%.

If you have not yet met your required distribution for 2022, we will be contacting you to get it completed before the end of the year.  If you have questions, please call your wealth advisor to discuss your requirements and the timing of any distribution you need to make, as well as the options you have for completion.

Rebecca McClure