IRA Required Minimum Distribution

Required minimum distributions

IRA Required Minimum Distribution (RMD) opportunities to go to charity.  

Donors 70 ½ years and older can make a gift directly from your IRA.  By making a Qualified Charitable Distribution (QCD) you not only support our ministry but also help to satisfy your required minimum distribution. 

How much must I take out of my IRA at age 70 1/2?

Required minimum distributions (RMDs) must be taken each year beginning with the year you turn age 70 1/2. The RMD for each year is calculated by dividing the IRA account balance as of December 31 of the prior year by the applicable distribution period or life expectancy. This rule does not apply to your Roth IRAs. You can determine your distribution period or life expectancy by using the Tables in Appendix B of Publication 590-B Distributions from Individual Retirement Arrangements (IRAs).

• Table I – for beneficiaries.
• Table II – for owners whose spouse is 10 years younger and the IRA’s sole beneficiary
• Table III – for all other owners (most IRA owners will use this table)

See the discussion of required minimum distributions and worksheets to calculate the required amount.

I am over age 70 ½. Must I receive required minimum distributions from a SEP-IRA or SIMPLE-IRA if I am still working?

Both business owners and employees over age 70 1/2 must take required minimum distributions from a SEP-IRA or SIMPLE-IRA. There is no exception for non-owners who have not retired.

Qualified charitable distributions

What is a qualified charitable distribution?

Generally, a qualified charitable distribution is an otherwise taxable distribution from an IRA (other than an ongoing SEP or SIMPLE IRA) owned by an individual who is age 70½ or over that is paid directly from the IRA to a qualified charity. See Pub. 590-B, Distributions from Individual Retirement Arrangements (IRAs)) for additional information.

Can a qualified charitable distribution satisfy my required minimum distribution from an IRA?

Yes, your qualified charitable distributions can satisfy all or part the amount of your required minimum distribution from your IRA. For example, if your 2014 required minimum distribution was $10,000, and you made a $5,000 qualified charitable distribution for 2014, you would have had to withdraw another $5,000 to satisfy your 2014 required minimum distribution.