Missed Colorado Gives Day? Not a problem! We are still taking donations at https://www.coloradogives.org/BlueKnights.
Taking your Required Minimum Distribution (RMD) in December? Please consider donating all or a portion of that distribution to Ascend Performing Arts. Your donation will go a long way in support of all of the great Ascend programs or you might designate your donation to our upcoming Equipment Trailer capital campaign (more information will be posted throughout 2022). This might even save you some money on your 2021 taxes!
- If you reach 70½ in 2019 your first RMD would be due 4/1/2020.
- If you 70½ by 2020 your first RMD would be due April 1st of the year you reach 72.
- For subsequent years including your first year you must take your RMD by December 31st.
- Your RMD is calculated by dividing the prior December 31st balance in all of your IRA accounts by the life expectancy factor as reported annually in the IRS publication 590-B. Get a good tax accountant!
- RMDs can push retirees into a higher tax bracket. Since distributions are ordinary taxable
- income, it can push some retirees into a higher marginal tax bracket.
- Medicare surtax. RMD distributions also increase a taxpayer’s modified adjusted gross income (MAGI), which could trigger the 3.8% Medicare surtax.
- Taxing Social Security. Even modest withdrawals from a retirement account can cause Social Security benefits to become taxable, up to 85% for single filers with income above $34000 annually or married couples with income above $44,000.
- Medicare Part B and D premiums are calculated using a taxpayer’s MAGI from the prior year. So large RMDs can cause sharp increases to your Medicare cost