“For the segment of Medicare beneficiaries who are 70 1/2 years of age or older and who are subject to both required minimum distributions from their traditional retirement accounts and Medicare premium surcharges, a new income tax rule that became permanent in 2016 can help reduce the pain. Beginning in 2016, a provision that had previously been extended on a temporary year-to-year basis now permanently allows older taxpayers to directly contribute up to $100,000 from an IRA to a qualifying charity without recognizing the assets as income. Spouses can each make their own separate contributions. Qualified charitable distributions (QCD) count toward satisfying the donor’s annual minimum distribution requirements.”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
Knowing this rule and sharing it with clients could save them money and help close you a sale.
Using IRAs to reduce Medicare premiums