Required Minimum Distributions (RMD)
Understanding Your RMDs & Smart Giving Under SECURE 2.0
If you hold a traditional IRA, 401(k), 403(b), or other tax-deferred retirement plan, the IRS requires you to begin withdrawing a minimum amount each year once you reach a certain age. These mandatory withdrawals are known as Required Minimum Distributions (RMDs).
Because traditional retirement accounts are funded with pre-tax dollars, every dollar distributed as an RMD is treated as ordinary taxable income. Depending on the size of your distribution, this can push you into a higher federal income tax bracket, trigger higher Medicare Part B/D premiums (IRMAA), or increase taxes on your Social Security benefits.
When Does Your RMD Begin? (SECURE 2.0 Rules)
The passage of the SECURE 2.0 Act significantly adjusted the timeline for mandatory distributions:
| Year of Birth | RMD Starting Age | Status Under SECURE 2.0 |
|---|---|---|
| 1950 or earlier | Age 72 (or 70½ if prior to 2020) | Already taking RMDs under prior rules |
| 1951 – 1959 | Age 73 | Current RMD age |
| 1960 or later | Age 75 | RMD age increases to 75 (effective 2033) |
Key Rule on Timing: Your first RMD must be taken by April 1 of the year after you reach your required beginning age. All subsequent annual RMDs must be completed by December 31 of each calendar year.
Other Key SECURE 2.0 Updates to Note
Reduced Penalty for Missed Distributions: Under SECURE 2.0, the excise penalty for failing to take an RMD on time was reduced from 50% down to 25%—and drops to 10% if corrected within a standard two-year window.
Roth Employer Plans Are Exempt: Starting in 2024, designated Roth accounts in employer-sponsored plans (like Roth 401(k)s and Roth 403(b)s) no longer require lifetime RMDs, matching standard Roth IRA rules.
How to Satisfy Your RMD Without Increasing Your Taxes
If you do not need the full income from your annual RMD to cover living expenses, taking the distribution as cash can result in unnecessary tax liability.
You can fulfill part or all of your annual RMD tax-free through a Qualified Charitable Distribution (QCD):
Direct Transfer: Funds are transferred directly from your IRA custodian to our organization.
Zero Added Gross Income: The amount given counts toward your annual RMD requirement but is excluded from your Adjusted Gross Income (AGI).
Age Advantage (70½ vs. 73): Even though SECURE 2.0 pushed the RMD age to 73, the eligible age to make a QCD remains 70½. This means you can begin making tax-free charitable transfers from your IRA up to several years before your mandatory RMDs kick in.
Ready to Coordinate Your Gift?
To direct a portion or all of your annual distribution to our mission, visit our instructions page or connect with your plan administrator:
See the instructions at the bottom of our QCD page.
Have Questions? Contact our office at finance@delcoscience.org or call 1-610-566-5126
Disclaimers: [Organization Name] is a 501(c)(3) tax-exempt organization. This information is intended for educational purposes and should not be considered legal, tax, or financial advice. Because individual retirement situations vary, please consult with your tax advisor, CPA, or estate attorney before initiating distributions.