Suggestions
QCD modeling
I’d like to leave some money for charity later in my plan. I’d like to be able to start QCD’s at 70 1/2 and then when I hit RMD age of 75 to be able to direct the RMD to a QCD instead of taking the RMD.
I’d like to leave some money for charity later in my plan. I’d like to be able to start QCD’s at 70 1/2 and then when I hit RMD age of 75 to be able to direct the RMD to a QCD instead of taking the RMD.
Yes! While on the surface one might think it’s just money leaving a tax-deferred plan and it doesn’t matter who’s getting it, this will have a huge effect on the subsequent tax obligations (bracket, margin) throughout retirement. Being able to model these properly will be very useful.
Here’s a friendly explanation from the IRS for anyone wondering what a QCD is and how it affects taxes: https://www.irs.gov/newsroom/reminder-to-ira-owners-age-70-and-a-half-or-over-qualified-charitable-distributions-are-great-options-for-making-tax-free-gifts-to-charity