rjs
Level 15
Level 15

Retirement tax questions

Taking the RMD from your retirement account and giving the money to your daughter as a gift are two separate transactions. The RMD is taxable income to you to the same extent that it would be if you kept the money for yourself. It doesn't matter what you did with the money.

 

The $5,000 gift to your daughter is not taxable income to her, and she does not report it. If you give her a total of more than $15,000 in either 2018 or 2019 you must file a gift tax return (Form 709). You won't have to pay any gift tax unless you have given gifts totaling over $11 million in your lifetime, but you have to file the return. You cannot file a gift tax return with TurboTax.