Required minimum distributions (RMDs) are the minimum amounts you must withdraw from your retirement accounts each year. You generally must start taking withdrawals from your traditional IRA, SEP IRA, SIMPLE IRA, and retirement plan accounts when you reach age 72 (73 if you reach age 72 after Dec. 31, 2022).
The RMD rules apply to all employer-sponsored retirement plans (including profit-sharing plans, 401(k) plans, 403(b) plans, and 457(b) plans). Roth 401(k) accounts are exempt from the RDM rules as long as the owner is alive.
If you have an RMD on your own account or an inherited account and you do not need the funds, donating to charity is a great option. Your required withdrawal will be included in your taxable income and cannot be rolled into other tax-deferred accounts. However, donating your RMD is a qualified charitable distribution (QCD). Tax benefits aside, earmarking this income for charity is a great way to begin or expand your giving portfolio to support the causes you care about.