Page 8 - June Mag2025

ESTATE PLANNING

Atty. John J. Urban
Lessons in

the Law

RMD-What Is This? Part Three

Two previous articles dealt with defining • Make a qualified charitable distribution (QCD) directly
RMDs, what it is, and how to lower the tax. from your IRA account to a charity. If you are Age 70½
It is never too late to strategize a plan for your or older, you get a qualified charitable deduction. If you
RMDs for this year and for the years in the fu- are Age 73 or older, the QCD will count toward your
T ture. Remember, there are lots of exceptions, RMD. No charitable deduction, but no tax on this money.
there are different rules for different accounts, A donation to the GCU Foundation qualifies.
but the bottom line is that the IRS wants your tax money. • Take your RMD or RMD & more and roll that money over
What can you do?
• The IRS wants you to take the minimum distribution into a GCU fixed or deferred annuity. It may not save
taxes on the distribution, but this is a great way to make
each year because the IRS is guaranteed more taxes more money not be subject to RMD rules.
over time.
• RMD is the minimum amount that you must take out • Take your RMD or RMD & more and purchase a GCU
single premium life insurance policy. What a great way
yearly. But one should know what tax rate you are in to use this money to buy insurance that pays out tax
and maybe you can withdraw more than the RMD and free to your beneficiaries.
still pay taxes in a lower bracket.
This is not an all-exclusive list but it shows we need to
• Try not to take two years of RMD in the same year. You take an aggressive attitude to these distributions. For
could pay substantially more in taxes and you might more information you can contact the GCU Sales Depart-
have to pay higher Medicare premiums. ment at 1-800-722-4428.
• If you are the right age, you can withdraw funds from Questions, comments or ideas about future articles con-
your IRA and pay taxes on the withdrawal which lowers tact me at jurban.gcu@gcuusa.com
the future RMD amounts.

6 GCU MAGAZINE JUNE 2025