Tax Planning

does-your-income-warrant-extra-taxes

Does Your Income Warrant Extra Taxes?
Does Your Income Warrant Extra Taxes? 1600 941 smolinlupinco

If you’re a high-income taxpayer, you may need to pay two extra taxes: a 3.8% net investment income tax (NIIT), and an additional 0.9% Medicare tax on wage and self-employment income. 

Keep reading to learn more about these taxes and what they might mean for you. 

3.8% NIIT

In addition to income taxes, the NIIT applies to your net investment income. This tax affects taxpayers with adjusted gross income (AGI) exceeding the following: 

  • $250,000 for joint filers
  • $200,000 for single taxpayers and heads of household
  • $125,000 for married individuals filing separately 

If your AGI is above this threshold, the NIIT applies to the lesser of: 

  • Your net investment income for the year, or
  • The excess of your AGI over the threshold amount for the tax year 

What incomes are subject to the NIIT? 

Net investment incomes subject to the NIIT include interest, dividends, annuities, royalties, rents, property sale net gains, and passive business income. This does not include wage income and active trade or business income, or tax-exempt income tax such as bond interest. 

After considering your income needs and investments, you may want to consider switching some of those taxable investments over to tax-exempt bonds. 

How does the NIIT apply to home sales? 

If you sell your primary residence, you may be able to exclude up to $250,000—or $500,000 for joint filers—in your income tax, which will not be subject to the NIIT. If your gain exceeds that amount, however, it will be subject to tax. This also applies to gain from selling a vacation home or other secondary residence. 

Note that distributions from retirement plans such as pension plans and IRAs are not subject to the NIIT. However, if these distributions push your AGI above the threshold, they can cause other income types to be taxed. 

Additional 0.9% Medicare tax

In addition to the 1.45% Medicare tax that applies to all wage earners, some high wage earners are subject to an additional 0.9% Medicare tax. This applies to wages that exceed: 

  • $250,000 for joint filers
  • $125,000 for married individuals filing separately
  • $200,000 for all others 

Note that this tax only applies to employees—not employers. 

The employer must begin withholding the additional 0.9% Medicare tax once their employee’s wages for the year reach $200,000. However, if the employee (or the employee’s spouse) has additional wage income from another job, this may prove insufficient. Instead, the employee may file a new W-4 with the employer to request extra income tax withholding. 

How does the extra Medicare tax affect self-employment income? 

In addition to the regular 2.9% self-employment Medicare tax, the additional 0.9% Medicare tax applies to self-employment income for the tax year that exceeds the same amounts as wage earners—note, however, that the $250,000, $125,000, and $200,000 thresholds are modified according to the self-employed taxpayer’s wage income. 

Work with our tax advisors

Income taxes can be complicated, especially when they vary from year to year. Is your income high enough that you owe these extra taxes? Contact us to discuss your taxes and their implications with a qualified tax professional.

© 2022

end-of-year-tax-planning-ideas-for-small-business-owners

End-of-Year Tax Planning Ideas for Small Business Owners
End-of-Year Tax Planning Ideas for Small Business Owners 1600 941 smolinlupinco

As we approach the last few months of the calendar year, it’s time to start thinking about ways to reduce your small business taxes. 

Deferring income and accelerating deductions to minimize taxes—the standard year-end approach—will likely give your business the best results. This also applies to bunching deductible expenses into this year and next to minimize their tax value. 

That said, those expecting to be in a higher tax bracket may get better results with an opposite strategy—for example, pulling income into the current year to be taxed at lower rates, while deferring deductible expenses until next year to offset higher-taxed income. 

Some additional ideas include: 

QBI deduction

Non-corporation taxpayers may be entitled to a qualified business income (QBI) deduction of up to 20%. If taxable income is higher than $340,100 for married couples filing jointly, or half that amount for others, the deduction may be limited (and phased in) based on: 

  • Whether the taxpayer is involved in a service-type business such as law, health, or consulting
  • The amount of W-2 wages paid by the business 
  • The unadjusted basis of qualified property held by the business, such as machinery and equipment

By deferring income, accelerating deductions to keep income under the thresholds, or increasing W-2 wages before the end of the year, taxpayers may be abe to to keep some or all of the QBI deduction. 

Cash vs. accrual accounting

Taxpayers must satisfy a gross receipts test in order to qualify as a small business. For 2022, this means that average annual gross receipts can’t exceed $27 million during a three-year testing period—ot that long ago, that amount was only $5 million. 

Compared to previous years, more small businesses are now able to use the cash accounting method for federal tax purposes, rather than accrual accounting. Cash method taxpayers may find that by holding off billings until next year, paying bills early, or making select prepayments, it is easier to defer income. 

Section 179 deduction

As a small business taxpayer, you may want to consider making expenditures that qualify for the Section 179 expensing option. Expensing is typically available for depreciable property—other than buildings—including equipment, off-the-shelf computer software, interior building improvements, HVAC, and security systems. 

For 2022, the expensing limit is $1.08 million with an investment ceiling of $2.7 million. This means that many small and medium-sized businesses will be able to deduct most or all of their expenditures for machinery and equipment—and that deduction isn’t prorated for the amount of time an asset is in service. If you place eligible property in service by the end of 2022, you can claim a full deduction for the year. 

Bonus depreciation

If qualified improvement property, machinery, and equipment is purchased and placed in service this year, businesses can generally claim a 100% bonus first-year depreciation deduction. 

As with the Section 179 deduction, this full write-off is an option regardless of how long those qualifying assets are in service in 2022. 

Develop a year-end tax plan with us

Tax rules can be complex, so it’s best to consult with a professional before acting. Contact us to work with an experienced tax professional to develop the best tax-saving strategies for your business.

© 2022

using-a-split-annuity-as-a-balanced-approach-to-retirement-and-estate-planning

Using a Split Annuity as a Balanced Approach to Retirement and Estate Planning
Using a Split Annuity as a Balanced Approach to Retirement and Estate Planning 1600 941 smolinlupinco

Maintaining your standard of living while trying to preserve your wealth for loved ones is a tightrope walk, something you’re probably aware of if you’re close to retiring or already enjoying this milestone in life. Finding a balance between these two goals is especially challenging since your retirement years could span decades. A way to maintain your income stream and hold onto financial assets is by investing in a split annuity.  

The Basics of an Annuity

In a nutshell, an annuity is an investment contract with tax advantages that you hold with an insurer or financial services company. You have the option to pay your premiums annually or by lump sum, and your service will pay over a set term or a lifetime in return. 

For purposes of the split annuity strategy covered below, we’ll highlight “fixed” annuities. These typically provide participants with a guaranteed minimum return rate. There are other annuities options, including “variable” and “equity-indexed,” which are more volatile but have significant upside potential compared to fixed products. 

Annuities can fall into two categories: immediate or deferred. Immediate annuities give you payouts immediately, whereas deferred options begin paying at a predetermined future date. 

Another consideration for annuity earnings is that they are tax-deferred. This means they will increase in value, tax-free until paid or withdrawn. Every payment will have a portion dedicated to standard income tax rates, and the remainder is considered a tax-free return of principal (premiums). 

Deferred annuities tend to grow faster than comparable accounts because of their ability to accumulate earnings on a tax-deferred basis. This perk offsets the modest interest rates they usually offer.

Another feature of annuities that make them attractive is the flexibility of reallocating or withdrawing funds according to your circumstances. Keep in mind that you may have to pay early withdrawal or surrender charges depending on how much you take and at what point this occurs in the annuity’s lifecycle.

Understanding the Split Annuity Strategy

Split annuities are not a single product, but rather two that are often funded by a single investment source. Most split strategies will involve using some of your funds to purchase an immediate annuity, making fixed payments over a specific term, such as 15 years. The funds you have left over then get invested in a deferred annuity that won’t pay out until the initial period has ended. 

The outcome is that once your immediate annuity term has ended, you will have accumulated enough earnings in your deferred annuity to equal what you originally invested. Essentially, if set up correctly, your split annuity will create a fixed income stream for several years that preserves your principal. 

Once the term has ended, reassess what options you have available. For instance, you might decide to have your deferred annuity start sending you payments, reinvest in another split annuity, withdraw a portion of the entire cash value it holds, or consider another investment option altogether. 

If you’d like to learn more about split annuities, reach out to us. We are eager to help you determine the best strategy for your retirement situation. 

© 2022

quarter-3-tax-calendar-2022-essential-deadlines-for-businesses-and-employers

Quarter 3 Tax Calendar 2022: Essential Deadlines for Businesses and Employers
Quarter 3 Tax Calendar 2022: Essential Deadlines for Businesses and Employers 1600 941 smolinlupinco

The following tax-related deadlines during quarter three of 2022 are important for employers and businesses to meet. However, this isn’t a complete accounting of all deadlines that might apply to you. To ensure that you meet all the necessary deadlines for your organization in the third quarter, reach out to our office today to learn more about the filing requirements you may have. 

August 1, 2022

  • The retirement plan report (Form 5500 or Form 5500-EZ) for the 2021 calendar year is due, or you can request an extension to file. 
  • Second quarter reporting of your income tax withholding and FICA taxes (FORM 941) is due, and any tax owed should be paid. There is an exception below under the August 10th deadline.

August 10, 2022

  • If you paid all associated taxes due on time, you should report your second quarter 2022 income tax withholding and FICA taxes (Form 941).

September 15, 2022 

  • Pay your third installment of 2022 estimated income tax if you are a calendar-year C-corporation.
  • For companies that filed for an automatic six-month extension as a calendar-year S-corporation or partnership:
    • Pay all interest, penalties, and owed taxes on your 2021 income tax return filing (Forms 1065, 1120S, or 1065-B). 
    • Make necessary contributions to certain employer-sponsored retirement plans for 2021.

© 2022

how-taxes-affect-merger-and-acquisition-transactions

How Taxes Affect Merger and Acquisition Transactions
How Taxes Affect Merger and Acquisition Transactions 1600 941 smolinlupinco

Despite merger and acquisition (M&A) activities being lower in 2022, reports suggest that businesses are still successfully sold. If you’re considering an M&A with another company, it’s essential that you know the tax implications of your transaction under current law.

M&A Transactions: Stocks vs. Assets

From a tax perspective, merger and acquisition transaction structures can take one of two forms: 

1. Buyers could opt to purchase business assets. This scenario usually takes place when buyers only want to purchase specific product lines or assets. If the targeted company is a sole proprietorship or single-member LLC treated as a sole proprietor for tax reasons, this could be the only option for an M&A transaction. 

2. Buyers purchase a seller’s stock or ownership interest. This often takes place if their business operates as one of the following:

  • C-Corp
  • S-Corp
  • Partnership
  • LLC treated as a partnership for tax purposes

Currently, the corporate federal income tax rate is at 21%, creating a more favorable environment for purchasing stock of C-corporations. This is because corporations have fewer tax obligations and more after-tax revenue than ever before. Also, consider that these companies have lower tax rates for their built-in gains from corporate asset appreciation when selling.

Current law puts individual federal tax rates even lower than they were a few years ago, which may grow ownership interest in LLCs, S-Corps, and partnerships. This is possible thanks to the lower tax rate buyers can enjoy on their personal returns for the pass-through income these entities generate. Keep in mind that these individual rate cuts are due to sunset at the end of 2025, though they could be extended or ended earlier, depending on changes coming from Washington in the future.  

Special Note: There are some situations where purchasing corporate stock could be viewed as an asset purchase if a “Section 338 election” is taken. Talk to your tax advisor to get more details. 

What Buyers and Sellers Want in M&A Transactions

Why do buyers prefer asset purchases over ownership interest? For a couple of good reasons. 

Typically, a buyer wants their acquired businesses to generate enough cash flow to pay off any incurred debt and make a decent ROI. So, it makes sense that buyers want to limit their exposure to any unknown (and undisclosed) liabilities. They also keep their tax liability at a minimum once the deal is finalized. 

Buyers have the option of increasing, or stepping up, an acquired asset’s tax basis to reflect the price paid. Doing this lowers taxable gains whenever assets involving inventory or receivables are converted to cash or sold. This also boosts depreciation and deductions for amortizations of qualifying assets. 

On the other hand, some sellers pursue stock sales for reasons that have to do with taxation and interest liabilities. A primary objective for stock buyers is to reduce the tax expense related to the M&A transaction. This is usually done through selling their business ownership interest (LLC, partnership, or corporate stock interests) and not business assets. 

When selling ownership interests or stocks, the associated liabilities are often transferred to the buyer, and any gains get classified as a lower-taxed long-term capital gain. But this is based on the assumption that the ownership interest has existed for more than a year.

Still, unexpected tax issues can arise when buying or selling a business, such as those caused by employee benefits. You’ll want to follow the latest IRS reporting guidelines closely. Getting the right professional guidance in these situations is always wise.

Work with an M&A Advisor

In business, acquiring a new company can be one of the most important decisions you’ll ever make. This is why you need professional tax advice during the negotiation process. Waiting to take this step until after you finalize the deal could be too late to maximize your tax results. Reach out to our office today to learn more about how to best proceed with your M&A transaction. 

© 2022

are-social-security-benefits-taxable

Are Social Security Benefits Taxable?
Are Social Security Benefits Taxable? 1600 941 smolinlupinco

For some new Social Security recipients, it comes as a shock when they see their benefits taxed by the federal government. Will this be the same for you? Maybe, maybe not. 

Whether you have to pay taxes on your benefits depends on your other income. In situations where your income is high, you can expect the feds to tax anywhere between 50-85% of your monthly payment. Don’t worry, though. This doesn’t mean you’ll lose that much of your benefits, just that that percentage would be subject to taxation. 

Understanding your income

Understanding how much you can expect to pay in tax for your Social Security benefit requires assessing how much other income you have. This could include certain items that are usually tax-free, like tax-exempt interest. Combine that income with your spouse’s income on your joint tax return.

Next, half of your and your spouse’s benefits are added to the sum. The final figure you calculate should be your total combined income plus half of the social security payments received. This total should have the following rules applied to it:

  1. Your benefits remain untaxed when your income and half benefit amount don’t exceed $32,000 for married couples or $25,000 for single taxpayers.
  2. When your income and half benefit total exceeds the $32,000 threshold but is less than $44,000, half of the excess amount over $32,000 gets taxed, or half your benefit amount, whichever is less. 

An illustrative example

Let’s say you and your spouse have $20,000 in taxable dividends, $2,400 of tax-exempt interest, and combined Social Security benefits of $21,000. So, your income plus half your benefits is $32,900 ($20,000 + $2,400 +½ of $21,000). You must include $450 of the benefits in gross income (½ ($32,900 − $32,000)). If your combined Social Security benefits were $5,000, and your income plus half your benefits were $40,000, you would include $2,500 of the benefits in income: ½ ($40,000 − $32,000) equals $4,000, but half the $5,000 of benefits ($2,500) is lower, and the lower figure is used.

Important Note: If you’re currently paying taxes on your Social Security benefits since your income is under the threshold, or if you’re only liable for 50% taxes on your benefits, you risk triple taxation if your income increases. This means an increased tax liability on your Social Security (or an increase), paying taxes on your additional income, and potentially ending up in a higher marginal tax bracket.  

This can sometimes occur when taking a large IRA distribution or having significant capital gains. Planning ahead to avoid these negative tax implications is always wise. You may have ways to spread out this new income over several years or liquidate non-IRA accounts, including items like a stock that only makes small gains or those with gains or a capital loss on shares to offset. 

Consider filing a Form W-4V to have tax withheld from your payments if you know your benefits will get taxed. If not, then you can always make estimated quarterly tax payments. You should remember that while most states don’t tax your Social Security payments, there are a dozen that do. Contact us for assistance or more information.

© 2022

how-owning-a-family-business-complicates-estate-and-business-succession-planning

How Owning a Family Business Complicates Estate and Business Succession Planning
How Owning a Family Business Complicates Estate and Business Succession Planning 1600 941 smolinlupinco

For small business owners, planning their estates and their companies’ succession often overlap. If your venture is family owned and operated, a significant portion of your assets is invested in your business. 

Comprehensive estate planning is essential to ensure your organization continues after your passing. Failing to take the proper steps in preparing your company for this eventuality could mean additional financial and legal risks to sort out later.  

Management succession for separate ownership 

One of the challenging aspects of transferring your family business is distinguishing between a succession of ownership and management. Compared to third-party business sales, where ownership and management succession coincides, family-run companies may need to approach these processes separately. 

When considered through the lens of estate planning, it may be wiser to transfer your assets to the next generation sooner. This can further minimize any estate tax liability for your family and business because you’ve reduced future appreciation. Of course, you may not be willing to change leadership just yet if they aren’t ready for the responsibility. 

Fortunately, there are several approaches you might consider that can enable you to transfer ownership of your family business while still retaining control: 

  • Consider using a family limited partnership, trust, or another ownership alternative to transfer most of the ownership interests to your future stakeholders without giving up managerial control 
  • Use nonvoting stock to transfer ownership
  • Create a stock ownership plan for your employees

Separating ownership and succession planning would be beneficial if you have family members who aren’t part of your business. You can still share the wealth of your company’s earnings by giving your beneficiaries nonvoting stock or forms of equity interests that don’t give them any control over managing your business. This effectively prioritizes the rights of those who work for your organization. 

Resolving disputes

When planning your business succession, you may run into conflicts regarding the financial needs of the older and younger generations involved. This doesn’t have to end in a tragic family rift since there are methods to create cash flow for owners while minimizing the burden on future company leadership and employees.  

Suppose you plan to sell your business to your beneficiaries through an installment sale. This creates liquidity and eases the financial burden placed on your children or other heirs. It’s also possible that these generated cash flows can fund the purchase. You should be able to avoid gift and estate tax liabilities so long as transactions are much like arm’s-length transactions between parties who aren’t related. 

Start sooner than later

No matter what strategy you choose, planning works best when you begin early. By taking the time to transition your family business over several years or more, you get more time to share your succession philosophy and educate your family about it. 

Additionally, this makes it possible to give up control over time and create a business structure and process that are tax savvy. Contact our offices today to learn more about succession strategies that will support the unique goals you have for your family business. 

© 2022

prepare-for-1099-k-filing-threshold-decrease

Businesses Must Prepare for the 1099-K Filing Threshold Decrease in 2022
Businesses Must Prepare for the 1099-K Filing Threshold Decrease in 2022 1600 941 smolinlupinco

When issuing reporting forms for 2022, businesses may be submitting additional worker information due to recent reporting range changes. At the start of this year, the income threshold for filing Form 1099-K (Payment Card and Third-Party Network Transactions) was significantly decreased, increasing the likelihood that larger numbers of businesses and workers may receive this document, including those who conduct personal transactions.

The history behind the change

The IRS requires banks and online payment networks like PSEs (payment settlement entities) and TPSOs (third-party settlement organizations) to report payments related to business or trade. Form 1099-K acts as the vehicle for this reporting requirement and typically affects companies like Paypal, CashApp, and Venmo, along with gig economy businesses like DoorDash and Uber.

In 2021, The American Rescue Plan Act reduced this reporting requirement minimum from $20,000 of reportable payments made over 200 transactions or more to just $600. While this amount is akin to other 1099 forms, this will be the first time gig economy workers receive these forms and will give the IRS a more accurate view of the revenue within these market spaces.  

Despite the change already being signed into law, some congressional members have attempted to pass bills that would restore the previous minimum threshold of $20,000 and 200 transactions. However, there are no guarantees of passage.

According to Congress and the IRS, underreporting these earnings has been an issue for some time. Part of the problem could be that taxpayers aren’t aware that these additional sources of income from working as a Lyft driver or Etsy seller are taxable in the first place.   

While many taxpayers will likely be unaware of these changes until they receive their Forms 1099-K in early January of 2023, businesses should prepare now to minimize their tax liabilities regarding reportable payments. 

Next steps you can take now

Any reportable activities, including gig work, should be reviewed by taxpayers. Ensure any payments received are accurately documented. Any payments resulting from business or trade must be accurately reported to ensure employees can adequately withhold and pay any owed taxes. 

If you earn income through activities related to the gig economy or receive payments through a company like Paypal, consider increasing your tax withholding. You might also consider making additional or estimated tax payments to avoid potential tax penalties.  

Keep personal payments separate and record deductions

It is essential that taxpayers who receive taxable gross receipts through a PSE record their income and personal expenses separately. For example, suppose you send someone an electronic gift card using money from a PayPal account that also receives payments from your Etsy business. PSEs can’t tell the difference between personal transactions and those related to your business, so it’s best to maintain different accounts for each of these purposes.  

Remember, taxpayers who haven’t previously reported all of their gig work income likely didn’t track their deductions either. Now is the time to begin this process so one can minimize the amount of taxable income the IRS recognizes because of the gross receipts amount reported on Form 1099-K. It’s not uncommon for the agency to treat all reported gross receipts as income and require substantiation of all deductions a taxpayer claims. The deductions you can take will vary depending on the type of work you perform.

© 2022

clts-leading-charitable-trust-philanthropists

CLTs: The Leading Charitable Trust Option for Philanthropists
CLTs: The Leading Charitable Trust Option for Philanthropists 1600 941 smolinlupinco

If you are interested in donating assets to a charity you support but don’t want to permanently give up this property, consider a charitable lead trust (CLT). This trust functions as an alternative to charitable remainder trusts (CRTs). 

CLTs revert your donated assets to your family instead of the charity after a specified amount of time has passed. However, your chosen charitable organization will enjoy a steady source of revenue for the period you gave them temporary ownership. 

How CLTs work

Although a CLT trust is irrevocable, you can continue to fund it throughout your lifetime or create a testamentary trust in your estate plan or will. This is an ideal approach to incorporating your philanthropic goals into your estate plan. 

The basic idea of how a CLT works can get complicated, but typically you would contribute assets to a trust for a specified term. The charity you designate as the beneficiary would receive payouts from the trust during this period. You can also select multiple charities as beneficiaries if you wish and what portion of earnings they should receive. 

How these payments get made depends on your CLT’s structure. Usually, these are made as a percentage of the trust or as fixed annuity payments. 

Tax implications for charitable deductions 

One of the primary motivators for creating a CRT is the tax deduction you receive for the remaining interest value. However, this deduction may be limited, or you might not receive one, depending on whether your CLT is a grantor or non-grantor trust type.  

Grantor CLTs allow you to deduct the current value of any future payments to your chosen charity, though this is subject to imposed deduction limits. The downside to this situation is that the investment income the trust generates is taxable for that term and is the grantor’s responsibility to pay. 

However, if you use a non-grantor CLT, the trust is now the owner of the assets and liable for any taxes owed on undistributed income. This allows your trust to claim the deductions for charitable contributions that are distributed to charitable organizations. Despite the uniqueness of each trust situation, it’s not uncommon for grantor tax liabilities to take precedence over current tax deduction benefits. 

Still, CLTs that are structured correctly create gift or estate deductions based on the portion designated for the charity involved. This is how the transference of remaining interest to family members is possible at a lower tax rate. 

Additional responsibilities for CLTs 

Every year until the term expires or during the life of your beneficiaries, your CLT must make at least one payment to one of your chosen charities. There is no mandatory 20-year timeframe imposed (as is the case with CRTs), and the trust doesn’t need to set a minimum or maximum requirement every year either. Once a CLT’s term expires, the heirs you originally named will have the remainder passed to them. 

© 2022

ira-charitable-donations-required-taxable-distributions

Using IRA Charitable Donations as an Alternative to Required Taxable Distributions
Using IRA Charitable Donations as an Alternative to Required Taxable Distributions 1600 941 smolinlupinco

If you’re a philanthropist that receives traditional IRA distributions, there’s a charitable tax advantage you should know about involving cash donations to a charity approved by the IRS. 

What are qualified charitable distributions?

The most relied upon method of transferring your IRA assets to your preferred charity is through an age-restricted tax provision. If you’re an IRA owner over the age of 70 and a half, you can send up to $100,000 annually of your distributions to your qualifying charitable organization. Qualified charitable distributions (QCDs) still count toward your required minimum distribution (RMD) amount but won’t trigger taxes or raise your adjusted gross income (AGI). 

Since your donation doesn’t increase your AGI, it will allow you to: 

  1. Qualify you for additional tax breaks such as threshold reductions for medical expenses, which have a cap of 7.5% of your AGI. 
  2. Circumvent Social Security’s 3.5% investment income tax taxation triggered by your investment income.
  3. Potentially avoid Medicare Part B and D high-income surcharges on your premiums when your AGI exceeds certain levels.
  4. Prevent the charity receiving your QCD from needing to pay federal estate taxes and avoid state death tax liability in most cases. 

Key considerations

You can’t claim deductions for any  QCD that isn’t included in your income. Also, remember that at 72 years of age, you must start taking your RMDs, although you can make QCDs starting at age 70 and a half. 

In 2022, you have to set up direct charitable payments to your qualified charity by December 31st to benefit from a QCD. You’re also allowed to use these QCDs to meet the RMD requirements for your IRA. For example, if you must take $15,000 in RMDs for 2022 and pay a QCD of $10,000, you would need to withdraw $5,000 to fulfill the remaining distribution requirement for this year. 

Other rules and limits may apply. Want more information? Contact us to see whether this strategy would be beneficial in your situation.

© 2022

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