Don't forget these important reminders about your IRAs.
Tax time is here and there are three important reminders as it relates to your Individual Retirement Accounts (IRAs):
Contributions – You can still make your 2023 IRA contributions through April 15, 2024. Take advantage of putting money away for your retirement with tax advantages. The 2023 contribution limits for Traditional and Roth IRAs are $6,500 per year if you are under age 50 and $7,500 per year if you are 50 and older. NCUA, a U.S. Government Agency, insures deposits up to $250,000. Excess Share Insurance, the nation’s largest private deposit insurer, provides an additional $75,000. Your IRA deposits are insured up to a total of $325,000. You may qualify for tax advantages from either Roth or Traditional IRAs; see your tax advisor for more information. For tax year 2024, you may contribute $7,000 if you are under age 50 or $8,000 if age 50 or older.
Required Minimum Distributions – You’re subject to a Required Minimum Distribution (RMD) based on age that must come from your IRA account(s) each year and is considered income for tax purposes. RMDs may also apply if you are the owner of an IRA that you inherited (Beneficiary IRA), regardless of your age. In the case of the Beneficiary IRA, there are multiple distribution options to choose from. See your tax advisor for more information.
RMDs as a Charitable Contribution – To eliminate or reduce the impact of RMD income, investors may want to consider making a qualified charitable distribution (QCD) of their RMD to the charity of their choice. This transaction must be a direct transfer of funds from an IRA custodian payable to a qualified charity. Any amount distributed directly to the charity can be counted toward satisfying your RMD for a given year, up to a cap of $100,000.