Are there any tools that can help with tax consideration when withdrawing...............
So I would like to take opportunity to get the funds form IRA for these years to minimize mandatory withdrawals later. Are there any tools available that can help with this?
If you routinely make charitable donations every year, highly valuable "tool" to get money out of your tIRAs is the IRS's QCD--Qualified Charitable Donations.
To use this you must be of an age where RMDs are required. You can donate up to $100,000 a year from your tIRA accounts to qualified 501(c)3 charitable organizations (most churches, Salvation Army, Red Cross, Union Gospel Mission, etc.). The amount you donate this way must be transferred directly from the IRA custodian to the charity (such as by IRA check, or a payment by custodian direct to the charity).
The advantages of using this tool are:
1) Every dollar you take out of IRA this way goes to the charity, no tax withholding first before you donate.
2) Every dollar you donate this way reduces (counts toward) the RMD amount you must make for that year. So, you minimize RMD taxable income for yourself.
3) It gives you flexibility to somewhat tailor your taxable income from one year to the next.
4) It allows you to satisfy your charitable activities you would do anyway.
5) It reduces what is left in your tIRAs, so that future year RMD's are also reduced.
I am now myself trying to shape my own giving, and am contemplating some charities I wish to benefit. Since my RMDs now are near the $100,000 IRS limit, this tool will allow me to make some very impactful donations to some local charities and to my church, which otherwise would come out of my taxed income. And by reducing my taxable income via lower includable RMD amounts each year by whatever amounts I donate, I save tons of income taxes (federal and state).