Subject: Re: Reading tea leaves
Another option to reduce IRA taxation are Qualified Charitable Distributions (QCDs) directly from your IRA to charity after age 70 1/2. The QCCDs aren't taxable and in 2024 an individual can do QCDs up to $105,000. Not having this income on your tax return reduces your Adjusted Gross Income which also impacts your Medicare premiums two years from now. Of course, you aren't spending the money personally in this scenario but it is a way to avoid taxation from your IRA while living if you have enough cash flow from other sources. Along these lines, IRAs are great assets for charities to inherit as they get the money free of income tax whereas individuals will pay at their ordinary rates. Some opportunity here on the estate planning front to have all dollars to charity come out of IRAs and dollars for individuals to come from non-IRA/stepped up basis assets.