Retirement Distributions

Required Minimum Distribution (RMD) and Qualified Charitable Distribution (QCD)

Once you retire, you cannot leave money in your retirement plan indefinitely. Many retirement plans require you to withdraw a specific amount each year, known as a Required Minimum Distribution (RMD). These withdrawals are considered taxable income for the year they are taken. However, there is a way to avoid paying taxes on part or all this income: by making a Qualified Charitable Distribution (QCD).

Key Points About RMDs:

RMD rules apply to most employer-sponsored retirement plans and many private retirement accounts.
A Roth 401(k) is exempt from RMD rules during the owner’s lifetime.
For other plans, RMDs must begin at age 72 (or age 73 if you turn 72 after December 31, 2022).
If you fail to withdraw the required amount, you’ll face a steep penalty—50% of the amount you were required to withdraw but didn’t.

How QCDs Can Help:

If you give part or all your RMD directly to a qualified charity, it’s considered a QCD. QCDs have two key benefits: 
The donated amount is excluded from your taxable income.
Your gift can support causes you care about, like Point of View, which qualifies as a charity for QCD purposes.

Steps to Make a QCD:

Ask your financial institution to send the donation directly to Point of View. Only direct payments qualify for the tax benefit.
Ensure the donation is made before the end of the year to count toward your RMD for that year.

Important Notes:

Point of View cannot provide personalized financial advice. Consult a financial advisor or CPA to understand how RMD and QCD rules apply to your situation and the potential tax benefits.

Point of View’s Federal Tax ID is 75-1751385