RMD, QCD: sorting the retirement income acronyms — Transcript

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1. 0:00good morning everyone Ian Maddox it's a
2. 0:02beautiful spring day in Trussville
3. 0:04Alabama and we're connecting here on our
4. 0:06financial planning simplified video
5. 0:08series this is going to be a little bit
6. 0:10of a recap or Evolution on a previous
7. 0:12subject we've talked about and it just
8. 0:14so happens that it's come up in account
9. 0:17reviews meetings we've had with clients
10. 0:18just in the last few weeks and I thought
11. 0:21this would be a timely opportunity to
12. 0:23remind our audience particularly our
13. 0:25senior adult audience but it could be
14. 0:27even just informative for uh Young
15. 0:30clients maybe gen xers that are helping
16. 0:31their parents think through financial
17. 0:33decisions and that has to do with What's
18. 0:35called the required minimum distribution
19. 0:38rmd in the last four years we've had
20. 0:41some legislation that has come through
21. 0:42that has changed what was kind of the
22. 0:45standard 70 and a half years of age is
23. 0:47when the government the IRS required you
24. 0:50to begin taking distributions from
25. 0:52qualified accounts so things like IRAs
26. 0:54401K 403b there's some variation on
27. 0:57rules there depending on your employment
28. 0:58situation but just as general concept at
29. 1:02some point the IRS IRS says hey you're
30. 1:04not going to be around much longer we
31. 1:05gave you this benefit in these accounts
32. 1:07we now want you to take a distribution
33. 1:09so the taxes are released out of them so
34. 1:12that makes sense what changed uh at the
35. 1:14end of Trump's tenure is it went from 70
36. 1:16and a half to 72 years of age and now
37. 1:20just this last year it's now gone even
38. 1:22further to 73 years of age so if you
39. 1:26were thinking that you needed to do it
40. 1:27at 72 and you're not quite there yet you
41. 1:30still have another year that's been
42. 1:31added on to the back end of it the thing
43. 1:33that I really wanted to bring up though
44. 1:34this is H this is an interesting subject
45. 1:36there is another option that folks have
46. 1:38if you are charitably minded if you're
47. 1:41someone that tithes at church or perhaps
48. 1:43has nonprofits they like to support
49. 1:45there is something called a qualified
50. 1:47charitable distribution a qcd A qcd can
51. 1:51be merged or synergized with your rmd
52. 1:55which is kind of neat and you get an
53. 1:56extra tax benefit and the way that you
54. 1:58do that you have to take the rmd so what
55. 2:01you can do is direct that rmd to go
56. 2:04straight to the church or charity and
57. 2:07receive the extra tax benefit on top of
58. 2:09whatever other deductions a lot of
59. 2:11people it's just a standard deduction
60. 2:12but by instructing the account custodian
61. 2:16wherever your accounts are held to send
62. 2:18that rmd directly to the church or
63. 2:20charity you get that e extra benefit
64. 2:23it's just something that popped up in
65. 2:24conversation and I thought it would be
66. 2:26timely for our senior adult viewers to
67. 2:29be aware of that it's an option that you
68. 2:31guys have if we can ever be of help
69. 2:33reach out let us know Ian Maddox hmfp
70. 2:36until next time