Planned Giving

Your act of generosity, our longevity

With planned giving, you can provide long-lasting support for Boys & Girls Clubs of South Puget Sound while enjoying financial benefits for yourself.

Text Resize
Print
Email
Subsribe to RSS Feed

Thursday March 21, 2019

Washington News

Washington Hotline

Required IRA Distributions by December 31

In IR-2018-248, the Service reminded retirees born before July 1, 1948 that most IRA owners will take an IRA required minimum distribution (RMD) by December 31, 2018.

Generally, traditional IRA, traditional 401(k), 403(b) and other qualified plan owners must take an RMD the year they reach age 70½. For 2018, this rule applies to IRA owners born between July 1, 1947 and June 30, 1948.

Normally, RMDs must be taken by December 31. The RMD is calculated using the IRS Uniform Table (with an exception for couples with one spouse more than ten years younger than the other) and is about 3.77% of the account balance on the prior December 31st.

The typical RMD increases each year from about 3.77% at age 71 to 5.35% at age 80 and 8.77% at age 90.

IRA and other qualified plan owners born between July 1, 1947 and June 30, 1948 may take their initial RMD by December 31, 2018 or delay the distribution until April 1, 2019. However, all future RMDs must be taken by December 31 each year. Therefore, delaying the first RMD will result in two RMDs in 2019, which may lead to a significant increase in taxes. To save income tax, most of these IRA owners will take their first distribution in 2018 and the second distribution in 2019.

The RMD applies to traditional IRA and 401(k) plans, as well as to 403(b), 457(b) and Simplified Employee Pension (SEP) plans. ROTH IRAs do not have RMDs while the owner is living.

If you have multiple IRAs, you may calculate the RMD total and withdraw from any plan. If you have a workplace 401(k), 403(b) or 457(b), you must withdraw the RMD from that plan.

IRA trustees must report or offer to calculate your RMD amount. Usually, the IRA trustee will show the RMD amount in Box 12b on IRS Form 5498, IRA Contribution Information. Your 2018 RMD is listed on the 2017 Form 5498 and should have been sent to you in January of 2018.

Employees who are still working after age 70 and do not own more than 5% of the company may delay taking their RMDs until April 1 of the year after they retire.

Further information is available in Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs).

Published December 14, 2018
Print
Email
Subsribe to RSS Feed

Previous Articles

Protect Your Identity During the Holidays

IRS Reminds Employers and Business Owners of Upcoming Filing Deadline

Pay Medical Bills with Your 2019 Flexible Spending Arrangement

California Wildfire Disaster Relief

Increased Child Tax Credit for 2018

scriptsknown

Gift Options

Donor Stories

Learn how others have made an impact through their acts of giving to our organization and others. Explore the many benefits of charitable gift planning.

more

How to Give

Learn how to make a gift that provides tax benefits and even life income.

more

What to Give

Find out what type of assets make the best planned gifts. Learn about gifts of cash, securities and property.

more

Planned Gifts Calculator

View a presentation that shows the benefits of a planned gift based on your property and goals.

more

News

Personal Planner

Bequests to Your Favorite Charity Bequests to charity are the most popular type of planned gift. A donor may retain assets during life and then leave a...

more

Finance News

Hewlett-Packard Continues Resurgence Treasuries Rise on Mixed Economic Data Interest Rates Stay Low

Savvy Living

Personal Tech Products Designed Specifically for Seniors. Can you recommend any tablets, smartphones or computers that are specifically designed for seniors? I would like to buy...

more

Washington News

IRS End-of-Year Tax Tips

In IR-2014-110, the IRS offered tax tips for end-of-year charitable giving. 1. Household or Clothing Gifts ? These items must be in good used condition or better..

more

For Advisor

Advisor Resources

We have a complete tax update service for CPAs, attorneys, CLUs, CFPs, ChFCs, trust officers and other professional friends.

more

Deduction Calculator

The GiftLaw Calculator is a planned gifts calculator for professionals that follows the IRS format

more

Private Letter Ruling

Estate Distributes to Foundation without Self-Dealing

Decedent formed Company and subsequently formed Irrevocable Trust...

more

Washington News

IRS End-of-Year Tax Tips

In IR-2014-110, the IRS offered tax tips for end-of-year charitable giving. 1. Household or Clothing Gifts ? These items must be in good used condition or better.

more

GiftLaw Pro

Charitable Tax Reference

GiftLaw Pro is a complete charitable giving and tax information service inside the GiftLaw website...

more

Case of the Week

Living on the Edge, Part 4

Rhea Jones, 75, lives in a beautiful coastal town in northern California. Rhea?s home occupies three...

more

Article of the Month

Gifts of Pass-Through Business Interests

A charitable gift of a business interest can make a wonderful gift to charity. At the same time,...

more