Year-end Tax Tip. Avoid taxes on an #RMD with a #charitabledonation. Seniors who have a traditional 401(k) or #IRA account must take a required minimum distribution each year once they reach age 70 1/2. Those who don’t need this money for living expenses may want to consider having it sent directly to a charity as a qualified charitable distribution. “If you take it out as a qualified charitable distribution, it doesn’t increase your adjusted gross income,” says Mike Piershale, president of Piershale Financial Group in Crystal Lake, Illinois. “It can also hold down the amount of# that is taxed.”
Tag Archives: IRA
What the new U.S. fiduciary rule means for you
After years of debate, the U.S. Department of Labor issued a new rule on Wednesday that requires financial advisers who handle retirement accounts to act as “fiduciaries,” which means putting the best interests of their clients first.
The ruling is complex, but the following are some answers to some of the most basic questions on retirement savings, fees and the kind of advice you should expect in the future.
- If I do not have a financial adviser, am I affected at all?
The new rule focuses on retirement savings. As a result, it will impact Continue reading