I am referring to your RMD (required minimum distribution) from your qualified retirement accounts. Many of my clients are fortunate in that they don’t need their RMD to maintain their lifestyle. That being said, the funds must be withdrawn, the tax must be paid – what do you do with this money?
Here are a few ideas:
You can gift your RMD to charity. Currently, you can transfer up to $100,000 directly from your IRA to charity. This law had expired but was extended to the end of 2015. This direct transfer can count as your RMD.
Many of my clients reinvest their RMD in a tax free mutual fund. The idea is to allow the money to keep working for you but not pay tax on the earnings again.
You can help your grandkids by funding their college. There are a number of college savings plan you can deposit your RMD into such as a 529 savings plan or an educational IRA. Believe me, your grandchildren will be grateful.

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