Friends General Conference

Together we nurture the spiritual vitality of Friends

Making Charitable Gifts through an RMD

Reducing Tax Liability on an RMD

RMDs are Required Minimum Distributions you must take every year from your retirement savings accounts, including traditional IRAs, and employer-sponsored plans such as a 401(k) or 403(b), starting at age 72.  

• If you’re turning 72 this year and taking your first RMD, you have until April 1, 2022, to do so. For each subsequent year, your RMD must be taken by December 31.

• If you’re older than 72, you must take your RMD by December 31 each year.

* Roth IRAs are not subject to RMDs.

What’s the difference between 2020 and 2021 RMD requirements?

Last year, the RMD age increased from 70½ to 72 through the Setting Every Community Up for Security Enhancement (SECURE) Act, and RMDs were waived by the CARES Act.

There is no longer an RMD waiver for 2021. As a result, anyone age 72 or older as of December 31, 2021, must take their RMD by year-end to avoid the 50% penalty―unless this is your first RMD, then you have until April 1, 2022.

What if I don’t need the RMD assets?

You may donate up to $100,000 annually to qualified charities such as FGC. Generally, qualified charitable distributions (QCD) aren’t subject to ordinary federal income taxes. As a result, they’re excluded from your taxable income. 

How are RMDs calculated?

Calculating RMD amounts can be complicated, so please consult a financial advisor.

 

October 2021

Let's talk about how you can make an impact with a gift to FGC

Call or email Faith Josephs, FGC’s Associate Secretary for Development, to set up a convenient time to discuss your chartiable giving goals.
215-561-1700 x3004 or [email protected]