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RMDs and Charitable Contributions

A qualified charitable distribution is one that is not taxable. For 2017 and going forward, these distributions are an option for IRA owners age 70 ½ and up. If an individual instructs his or her IRA to make a distribution directly to a qualified charity, that amount can be deducted from the required minimum distribution (RMD) for the year.

For example, if your RMD is $10,000, and you direct $7,000 to be paid out to a qualified charity, you need only withdraw (and pay taxes on) an additional $3,000 to meet your RMD quota for the year. Note, too, that the amount you contribute to a charity from an RMD cannot be claimed as a charitable deduction on your tax return.

This hypothetical example is for illustrative purposes only. This information is not intended to provide tax advice.  Contact us at info@securedretirements.com or call us at (952) 460­-3260 to schedule a time to discuss your financial strategy.

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Danielle Christensen

Paraplanner

Danielle is dedicated to serving clients to achieve their retirement goals. As a Paraplanner, Danielle helps the advisors with the administrative side of preparing and documenting meetings. She is a graduate of the College of St. Benedict, with a degree in Business Administration and began working with Secured Retirement in May of 2023.

Danielle is a lifelong Minnesotan and currently resides in Farmington with her boyfriend and their senior rescue pittie/American Bulldog mix, Tukka.  In her free time, Danielle enjoys attending concerts and traveling. She is also an avid fan of the Minnesota Wild and loves to be at as many games as possible during the season!