PKF Texas – Entrepreneur’s Playbook®:RMD Tax Saving Strategies

by | Nov 13, 2009 | PKF Texas - The Entrepreneur's Playbook®

Note: Running Fridays in FromGregsHead.comis a continuing series of tips brought to you by Greg Price. These run Saturday mornings during the BusinessMaker’s Radio Show on KPRC 950AM. Audio files can be found on the PKF Texas – Entrepreneur’s Playbook® page of the PKF Texas website.

We are all aware of the economic downturn in the past 2 years. It is especially troublesome for those 70.5 years of age that are required to sell off portions of their portfolios held in retirement accounts to fund Required Minimum Distributions (RMDs). In early 2009, Congress passed a provision to relieve the RMD requirement for 2009 so that these taxpayers could wait for the market to recover. However, many taxpayers were unaware and withdrew their RMD early in the year. Fortunately, there are a few tax saving strategies available for those taxpayers in the next few weeks.
1. RMD Roll Over Provision
The new provision, which expires shortly on November 30, 2009, provides a means to rollover 2009 distributions into an IRA without having to include it in your 2009 taxable income and without RMD penalties.

2. RMD Transfer To Charity
Taxpayers subject to RMD’s may transfer up to $100,000 of IRA funds to a qualified charity by December 31, 2009 without including the withdrawal in taxable income or being subject to charitable limitations as long as it is a direct transfer from the financial institution. 

Be sure to speak to your accounting service provider about these timely tax provisions.  Tax updates from PKF Texas may be found at


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