Fall 2021

Fall is coming. You might not want to hear it, but it is inevitable. Fall brings crisp air, crunchy leaves, shorter days, and all varieties of pumpkin: pumpkin spice, pumpkin patches, pumpkin décor, and pumpkin pie, just to name a few. Fall also brings us closer to the end of the year, which means deadlines for some of you.

Who me? Yes…you!

If you are of a certain age you may be required to take a required minimum distribution (RMD) from your traditional IRA. The deadline for this distribution to be completed is December 31^st. The IRS penalty for not taking your RMD before that date is a 50% penalty! No one wants Uncle Sam to have half of their money!

Now, if you are at least 70 ½ years old, you also have an opportunity to give money (up to $100,000) directly from your traditional IRA account to a qualified charity (IRS qualified code 501(c)3) and avoid paying any income tax on this withdrawal. Thus, this serves two purposes; 1) generously giving to a charity of your choice and 2) satisfying all or a part of your RMD if you are currently required to take it. It’s win win!

Here’s the kicker – you knew there was a catch, right? Well, here’s the deal, as fall rolls around, we all start to get pretty busy. Kids are back in school, football season starts, the holidays begin and one thing leads to another. It’s like all of those pumpkin things cloud your vison and then all of a sudden you open your eyes and it’s a week before Christmas and you’re scrambling to get all these generous donations sent out in seven days.

We don’t want that to be you. Instead, let us help you get this done for you before all the fall fun begins. Have you satisfied your RMD? You can check on the last page of your traditional IRA statement. Not sure – contact us! Need to take care of those QCDs…let’s start them now, so the charities get their fund in plenty of time. Not sure what to do – contact us! We want to help you get this done early so the rest of your year is (mostly) stress free. kindredfinancialpartners@raymondjames.com