I turned 73 this summer and received a modest buyout of my share of a group practice earlier this year. Should I take my required RMD now or take two prior to next April fifteenth?
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If you have any unfunded charitable gifting intents for the rest of 2024 the making those gifts via a charitable qualified distribution (QCD) may fulfill your 2024 RMD requirement while the distribution may not be taxable.
I say “may” because QCD rule compliance is key to achieving the desired result.
The latter if it will balance out your income over the two years. Just DON’T forget next year or there is a 25% excise tax you will be giving to Uncle Sam.
If you have any unfunded charitable gifting intents for the rest of 2024 the making those gifts via a charitable qualified distribution (QCD) may fulfill your 2024 RMD requirement while the distribution may not be taxable.
I say “may” because QCD rule compliance is key to achieving the desired result.
Higher bracket, higher taxes? Any concern about IRMAA?
Already into the IRMAA Haven’t figured out the tax bracket for next year. Max this year.
But could IRMMA be much higher with double RMDs?
That’s the balancing act he has to do between the buyout income and one or two RMDs
The latter if it will balance out your income over the two years. Just DON’T forget next year or there is a 25% excise tax you will be giving to Uncle Sam.
What is this 25% excise tax?
I believe David is referring to the penalty if you fail to take an RMD, i.e., you forget next year to take the two RMDs.
Correct! I believe it is called an excise tax rather than a penalty 🤷♂️
Right I guess that’s it, but that is easily reducible to 10% if you correct within two years.
25% excise tax❓❓