IRA Giving Can Lower Medicare Premiums and Taxable Income

For individuals over age 70½ who are now required to take their Required Minimum Distributions (RMDs) from retirement accounts, the extra RMD income could cause an increase in Medicare premiums. In other words: if you are age 70 ½ or over and send your RMD to your charity (you must reach that age to use this law), you will not only be lowering your taxable income but also possibly lowering your Medicare premium costs.  (IRA rollover gifts can be used to satisfy RMD requirements!)  Here is a good article on it that goes into the details on the Medicare premium issue.

Leave a reply