Annual withdrawals from traditional retirement accounts are required after age 70 ½, and the penalty for skipping a required minimum distribution or “RMD” by the end of the calendar year is 50 percent of the amount that should have been withdrawn from the retirement account. All employer-sponsored retirement plans must follow these rules, including 401k, 403b, 457b, and profit-sharing plans. Individual plans, such as traditional IRAs, SEP-IRAs, and SIMPLE IRAs, are also subject to RMDs. Roth 401k plans also have withdrawal requirements, but only after the original account holder has died.
If you really don’t need your RMD for everyday living expenses in the coming months, you can avoid income tax on the required withdrawal and help MOST Ministries share Jesus with thousands of hurting people all over the world -- simply by donating all or part of your RMD directly to MOST Ministries, a qualifying 501(c) (3) charitable organization.
When gifting an RMD to one or more charitable organizations, it’s important to note that the funds must be transferred directly from the IRA or retirement plan account to an eligible charity or charities by December 31, 2018, in order to exclude that amount from your 2018 taxable income.
As always, we ask that you keep MOST Ministries in your prayers, and ask that you keep MOST Ministries in mind -- if you’re over 70 ½ and can afford to transfer all or part of your 2018 RMD directly to the Ministry.
The information provided is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs.