At 70 yrs, about to get RMD from 401 k and need to set up gifts. Do we need a financial advisor or a CPA?

Follow
Share
2

Answers

Show:
Are you intending to make gifts to individuals or to charities?
Have you assessed your overall situation to be sure you have sufficient assets to care for yourself --- even if it becomes necessary for you to have a live in aide (about $6000/month in the NE), or live in assisted living (close to $7000/month) or skilled nursing (close to $13,000/month).
If that can all be taken care of, gifts to family members can be made in the amount of $15,000 per year, per donor.
If you rollover 401k money to an IRA, the IRA can make contributions directly to a charity. This keeps it from being added to your income for tax purposes (but you can't deduct it either).
The new tax laws are dicey. Annual exclusion goes up, so tax rate may fall. Limited deductions for property, state and local taxes, and the list of changes go on. Have you been using a tax advisor? Clearly, you should address your desires to see how this all affects you!
Helpful Answer (0)
Reply to geewiz
Report

A CPA, at least initially to get the RMD situation set up. You must take your first RMD by April 1 of the year following the calendar year that you turned 70-1/2. In the first year of RMD's, you may also have to take your second RMD by December 31 of the same year. If you are still working and are not a more than 5% owner of the company, you can delay the RMD requirement.

If you give me your birth month and year, I can give you a more specific answer.
Helpful Answer (0)
Reply to AlfredR
Report

Related
Questions