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Remember to Take Your RMDs

Important Year-End Reminders

As we approach year end, this is a friendly reminder to our clients that the Curran Wealth Management Team is here to assist with any questions regarding your account(s).

Item #1: Required Minimum Distributions (RMDs)

RMD Qualifications

  • Individuals who have reached the age 72 or older are required to take RMDs.
  • If you have multiple retirement accounts, a distribution may need to be made for each separate account.
  • Those with inherited IRAs may also have distribution requirements.

Custodians cannot guarantee RMD requests will be processed by the deadline if they are submitted last minute.

We recommend clients plan ahead to avoid adverse tax ramifications.

What Happens if I Don't Take my RMDs?

Failing to take your RMDs before the end of 2022 could result in a 50% penalty of your account's shortfall amount.

Item #2: Qualified Charitable Distributions (QCDs)

QCDs allow you to make charitable gifts directly from your IRA (Individual Retirement Account) to help satisfy your Required Minimum Distributions.

Fidelity recommends all QCDs are submitted by December 15th to avoid:

  • a disruption in the transaction
  • adverse tax ramifications

For Those of You who May not Know:

Tax Benefit of QCD: The amount of the QCD is an above the line deduction that lowers one’s adjusted gross income.

Important Note to Realize Tax Benefits:

  • The Form 1099-R will NOT make any mention of your QCDs.
  • To realize the tax benefits, it is crucial that the strategy is reported accurately on your tax return.
  • It is your responsibility to tell your tax preparer the amount of your IRA distributions that were QCDs. This will allow them to mark the appropriate amount as non-taxable on your return.

If you are unsure of the amount of your 2022 QCDs, please contact your Private Wealth Manager directly.

Item# 3: Charitable or Family Giving

To qualify for tax year 2022, a donation by check must be received by the charity no later than 12/31/2022.

For 2022, the annual exclusion for Family Gifting has been raised to $16,000.

Item #4: Roth IRA Conversions

If you plan to convert assets to a Roth IRA in 2022, the conversion must be completed by 12/31/2022.

Help us, Help You!

If all of this information makes your head spin, we understand and are here to help! If you qualify to take RMDs, please schedule a meeting with your Private Wealth Manager if you haven't done so already. 

For all of the topics discussed in this blog, please reach out to your Private Wealth Manager directly.