Some people who visit this forum (and, perhaps, are or will be or wish to be part-time or full-time vandwellers) may have retirement accounts like IRAs (or 401(k) or 403(b) accounts). There is an option (for those who wish) to donate some or all of a person's required minimum distribution(s) (RMD) directly to a qualified charity as an income exclusion. I hope HOWA qualifies as such a charity but I don't know; I will proceed on the assumption that it is.
Here are quotes from the article Here’s why you might not want to move all your IRA money to a Roth by CNBC.
Contributions made through so-called qualified charitable distributions — funds sent directly to the charity from a traditional IRA — are excluded from your taxable income.
In contrast, the tax break for charitable contributions — like the break for medical expenses — can only be used if you itemize your deductions. And, generally speaking, a deduction is not as valuable as an income exclusion.
This strategy, though, is only available to IRA owners and beneficiaries who are age 70½ or older. So once RMDs kick in (now age 72), the move could potentially reduce your tax liability on the RMD to zero.
“If your RMD is $5,000, but you give $5,000 to charity anyway, do the qualified charitable distribution and you don’t have to pick up any of the income,” Slott said."
I won't have to take RMDs until 2026 but I will consider this idea then; this might help me from having to pay income tax on some or all of my social security benefits. Perhaps other people will consider helping HOWA in this manner?
Here are quotes from the article Here’s why you might not want to move all your IRA money to a Roth by CNBC.
Contributions made through so-called qualified charitable distributions — funds sent directly to the charity from a traditional IRA — are excluded from your taxable income.
In contrast, the tax break for charitable contributions — like the break for medical expenses — can only be used if you itemize your deductions. And, generally speaking, a deduction is not as valuable as an income exclusion.
This strategy, though, is only available to IRA owners and beneficiaries who are age 70½ or older. So once RMDs kick in (now age 72), the move could potentially reduce your tax liability on the RMD to zero.
“If your RMD is $5,000, but you give $5,000 to charity anyway, do the qualified charitable distribution and you don’t have to pick up any of the income,” Slott said."
I won't have to take RMDs until 2026 but I will consider this idea then; this might help me from having to pay income tax on some or all of my social security benefits. Perhaps other people will consider helping HOWA in this manner?
