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Posted

im pretty sure the short answer is no, but a 5% owner was wanting to transfer his rmd to a charity without paying taxes. can a portion of a rmd be transferred without the tax penalty?

Posted

I would say that the answer is no. The distribution is taxable, but can also be claimed as an itemized deduction on the personal tax return as a charitable contribution.

If the participant had made any after-tax contributions to the retirement plan, it is possible that some of the distribution would not be subject to taxes.

Hope this helps.

Posted

Why do we have required minimum distributions? So that the money in the trust (where it is not taxed) will be paid out, thus becoming taxable income.

I'm a retirement actuary. Nothing about my comments is intended or should be construed as investment, tax, legal or accounting advice. Occasionally, but not all the time, it might be reasonable to interpret my comments as actuarial or consulting advice.

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