IRS rules mandate that individuals age 72 and older take required minimum distributions (RMD) from their IRA each year, regardless of whether the income is needed. These annual withdrawals are subject to ordinary income taxes. By making a charitable contribution from your IRA, you can satisfy your RMD amount without reporting additional income. This provision may be especially attractive for retirees who don’t need all the income from their IRA to meet current living expenses. By donating the money to charity, you can enjoy the satisfaction of knowing that you are contributing to a worthy organization, like MVLS, while effectively lowering your tax bill.
MVLS staff is available to discuss planning options with you and ways your RMD can directly support free civil legal for Marylanders across the state. Please discuss this with your financial representative or tax advisor for specific details.