As the end of 2021 draws near, it is time to take your Required Minimum Distribution for Traditional IRA’s as required by the Internal Revenue Service (IRS). If you are older than 72, you must take your RMD by Dec. 31. You are subject to IRS penalties if you fail to do so.
Because the money put into your IRA account was never taxed, it will be subject to taxation when you withdraw it. However, if you contribute the RMD dollars directly to a charitable organization, like Penney Memorial Church, the funds will not be taxable, thereby reducing your income tax. You can make your tax exempt contributions anytime during the year. This is called a Qualified Charitable Distribution.
Roth IRA’s are not subject to RMDs because the money was taxed before it was placed in a Roth IRA.
If you have any questions, please ask your tax advisor or call Beverly Wightman, Finance Chair at Penney Memorial Church, at 716-753-0202.
