RMD options?

[OldShooter]

... I may be able to launder the donation through a Community Foundation.

We have a fund at a community foundation that is legally not a DAF, so we can fund it with QCDs. We have given them general instructions on the type of things we'd like to fund plus they often consult us about potential donations. It works well. I'm sure that willingness to do this is highly dependent on the personality of each foundation, but it seems likely that you could find someone willing to do this for you.

 

[Spock]

...
I HATE, HATE, HATE getting besieged for ever more donations. I do really despise it! Every time I get another donation request, I think about how much it cost them to create it and send it out....and it makes me want to give them less and less. If I can keep it anonymous, I figure less of my donation is wasted in this manner.

omni

Back when I was treasurer of the board of directors for a local charity, we explored the same issue: not sending a "gimme more" in with the receipt/thank you letter.


It's been so long ago (2005) I don't remember the specifics, but the charity was required to solicit donations in all of it's mailings, including thank you's. We didn't have a choice. I've tossed my copies of the board meeting minutes so I can't go back and retrieve the discussion... if it was part of the bulk mail for charities rules (ex. Nonprofit USPS Marketing Mail Eligibility) or if it was just a requirement of the direct mailer (Blackbaud).

 

[rk911]

They aren't deductible but the money coming out of your IRA for the QCD does not add to your income, so it's even better than a deduction.

+1

 

[imnontrad]

You got it right. And once you have that RMD satisfied, you can withdraw and convert to Roth.
Two things you have to look at are your tax bracket AND the "steps" for Medicare premium surcharge (IRMAA). Converting some to Roth not only reduces the balance (smaller RMDs in the future) but also you are converting when the tax brackets are lower (due to rise in 2-3 years). Some people would just "fill up the bracket" and in some cases, it may be worthwhile to face higher taxes now (and IRMAA in 2 years) than pay more later in life.

 

[braumeister]

Back when I was treasurer of the board of directors for a local charity, we explored the same issue: not sending a "gimme more" in with the receipt/thank you letter.


It's been so long ago (2005) I don't remember the specifics, but the charity was required to solicit donations in all of it's mailings, including thank you's. We didn't have a choice. I've tossed my copies of the board meeting minutes so I can't go back and retrieve the discussion... if it was part of the bulk mail for charities rules (ex. Nonprofit USPS Marketing Mail Eligibility) or if it was just a requirement of the direct mailer (Blackbaud).

I think that may have been the charity's own policy.

DW used to work for a fairly large charity, and they maintained what they called a "pander list". It was a list of the names of people who had requested that they be excluded from routine mailings. They were folks who were happy to give often sizable donations, but didn't want the repeated requests. The administrators were happy to oblige. Other charities may have similar policies.

 

[harllee]

I think that may have been the charity's own policy.

DW used to work for a fairly large charity, and they maintained what they called a "pander list". It was a list of the names of people who had requested that they be excluded from routine mailings. They were folks who were happy to give often sizable donations, but didn't want the repeated requests. The administrators were happy to oblige. Other charities may have similar policies.

That is me--I am on the don't contact list for several charities. I have told the charities that if I get calls, letters, texts or emails soliciting me for more money they will not get another donation from me. That works 100%.

 

[Bamaman]

I too have to make RMD's this year--my first. And the withdrawal amounts are based on the balance of my portfolio at the end of last year. My required withdrawal is going to be more than any year's salary during my working years.

Needless to say with the market bombing out since the end of last year, making the withdrawals are going to be difficult decisions.

But there again, my portfolio is still up substantially in value since I retired 14 years ago.

Easy come, easy go. I'm just glad I don't have anything to do with the funds that'll be withdrawn. I just wish I had a crystal ball to know when the best time to make the withdrawals would be before the EOY.

 

[Car-Guy]

Two things you have to look at are your tax bracket AND the "steps" for Medicare premium surcharge (IRMAA).

Yep, this can be a surprise bummer for many retirees... I guess I should feel fortunate to have such a problem but it really "gets to me" having to pay more than most folks for the exact same levels of service.

 

[jebmke]

Yep, this can be a surprise bummer for many retirees... I guess I should feel fortunate to have such a problem but it really "gets to me" having to pay more than most folks for the exact same levels of service.

That is true with almost all public goods. I pay more for good local schools, well-maintained roads etc. than the average resident in my county. In fact, my consumption of those schools and roads is much less than the average resident. It doesn't "get to me."

 

[Car-Guy]

That is true with almost all public goods. I pay more for good local schools, well-maintained roads etc. than the average resident in my county. In fact, my consumption of those schools and roads is much less than the average resident. It doesn't "get to me."

Those things don't seem to bother me either, for whatever reason. Maybe if I thought about it awhile, it would, but I'm not going to waste my time on something else I can't do much about.