For those who have reached 70 ½ and must take Required Minimum Distributions, you have the option of donating your RMD to charity rather than claiming the income for yourself. Because the RMD is being donated directly to a charity, it does not count as taxable income to you. This also means that you do not get to claim it as a charitable deduction, but if you were taking the standard deduction you wouldn’t be able to claim the charitable donation anyway.
More detailed information about turning your RMD into a Qualified Charitable Distribution can be found in IRS Publication 590-B, at https://www.irs.gov/publications/p590b.
If you are a retired member of the Clergy and have more questions about correctly donating your RMD, Clergy Financial Resources can answer your questions. Just visit our website at https://www.clergyfinancial.com/resources/proadvisor/ and set up a Pro Advisor consultation today!< Back
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
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