required minimum distribution

[patricia-l-duff]

1.  At what age di I need to start taking required minimum distribution?

2.  How do I calculate the required amount?

3.  How does charitable giving from tax deferred account impact RMD?

[patricia-l-duff]

I turn 73 September 2025.  Do I need to take RMD the year I turn 73, or the following tax year?

[NCperson · Accepted solution]

1) if your turn 73 in 2024, you must take the RMD no later than April 1, 2025 (but waiting until 2025 means you will have two RMDs in 2025)

2) it is rather simple, take the balance in your IRA as of 12/31/23 (yes 2023), and divide by the number in this table: in your case: 26.5. That is the RMD for 2024. 

https://www.bankrate.com/retirement/ira-rmd-table/

3) QCD's give you credit for the RMD without paying tax on it.  Let's say your RMD is $20,000.  upon distribution, that is taxable income to you.  However, let's further assume you direct the IRA custodian to send $5,000 to your favorite charity and then you distribute an additional $15,000 to satisfy the rest of the RMD requirement.  In this case, you would only need to report $15,000 as taxable income. 

It is important when doing a QCD that you do not receive the money and then donate it.  You must direct the custodian to send it directly to the charity. 

[patricia-l-duff]

My question was actually about RMD for those who turn 73 in 2025.  As I understand what I'm reading, I don't have to do anything in 2024, or when filing my 2024 taxes, BUT in 2025, I need to find this chart, and take a distribution before year-end; if not, I will need to take two distributions in 2026.