Give Your RMD to Eligible Charity
When you turn 70½, you are required by the IRS to give up a minimum taxable amount annually from your tax-exempt accounts (like an IRA) under the financial name of Required Minimum Distribution (RMD). If you’re lucky enough and don’t need your distribution, you can satisfy your RMD by making a qualified charitable distribution of up to $100,000 per year.
By making this transfer from your IRA to an eligible charity, you get to exclude your RMD from the provisional income calculation and might even succeed in staying below the cutoffs that determine what fraction of your Social Security benefits is subjected to taxes.
