It is helpful for owners of traditional IRAs to understand how to do a QCD, what is required to report a QCD on your tax return and the required information on your acknowledgment from the nonprofit.

1. How to Set Up a QCD — A traditional IRA owner may contact his or her IRA custodian to start the process for a QCD. While your distributions from a traditional IRA are normally taxable, the QCD payouts will be tax-free as long as they are paid directly to a qualified nonprofit. The QCD is made through a check payable to the nonprofit. An electronic payment or a check made out to the IRA owner does not qualify as a QCD. The owner must be age 70½ or over and the 2024 limit is $105,000. If both spouses are over age 70½, and have their own IRA, then the $105,000 per person limit may allow a couple to distribute up to $210,000 per year to the nonprofit. Since QCDs are not taxable, there will be no charitable deduction for making the gift.
2. How to Report Your QCD — Your QCD must be reported on your 2024 federal income tax return. You can expect to receive an IRS Form 1099-R from your IRA custodian. This will show the traditional IRA distribution in Box 1. Generally, you will report the IRA distribution on Line 4 of IRS Form 1040 (the final IRS 2024 tax return may use a different line but is likely to use Line 4). You will enter the total amount of the IRA distribution on Line 4a. If the full amount is a QCD, you then enter zero on line 4b. If part of the distribution is a QCD, the taxable portion is normally entered on Line 4b. You must enter "QCD" next to Line 4. If you have entered zero on Line 4b, the entire QCD will not be taxable.
3. How To Receive a QCD Acknowledgment — Your QCD is not deductible as a charitable contribution. However, you are required to obtain a written QCD acknowledgment from the nonprofit prior to filing your return. This acknowledgment should state the date and amount of the QCD and that the donor has received "no goods or services in exchange for the gift." You should retain the acknowledgment with your other 2024 tax records.

Editor's Note: Many individuals will fulfill part or all their RMD this year through a gift to charity from a traditional IRA. It is best to start the gift process in November or early December. Some IRA custodians may take longer than expected to process the transfer. If a donor has the right to make distributions from his or her traditional IRA through a checkbook, it will be important to send the check directly to the charity. A donor must allow sufficient time for the charity to deposit the check and for the financial institution to process the check. This process must be completed by December 31, 2024 to qualify as an RMD for 2024.

Linda is in her middle working years and anticipates receiving Social Security when she retires. But she has several questions about whether she should also start funding an IRA.

• How should I fund my IRA?
• Is it a good idea to do an IRA rollover?
• At what age should I start taking IRA distributions?
• Should I take the minimum required distribution or a larger amount?

Funding the IRA

If you are not actively participating in another type of qualified retirement plan and are within an adjusted gross income limit, you may qualify to transfer a substantial sum each year into an IRA. The IRA contribution amount is $7,000 this year. If you are over age 50, you may also make an additional $1,000 "catch-up" contribution. The maximum IRA contribution amounts are indexed for inflation in increments of $500. In future years, the contribution amount will increase.

Because Linda is over age 50, she is able to contribute $7,000 and her catch-up amount of $1,000, for a total of $8,000 to her IRA this year.

Linda considers the options to create a regular IRA or a Roth IRA. Because she wants to receive the income tax deduction, she transfers the funds into a regular IRA and deducts the $8,000 on her federal tax returns.

IRA Rollovers

The majority of larger IRAs are funded through rollovers from retirement plans through your employer. If you have a qualified plan through your employment, upon separation from service or reaching a specific age, such as 70, you will usually have an option to rollover to a self-directed IRA.

Normally, your qualified plan through a business has been funded with pretax income. The IRA account also benefits from tax free growth. Therefore, the rollover will be from the other qualified plan into a regular IRA. Your IRA will continue to grow tax free, but future distributions to you will be taxable.

IRAs may be rolled over to a new custodian. The preferred method is to have a custodian-to-custodian transfer. If the funds are transferred directly from one IRA custodian to the new custodian, there is no tax.

While it is permissible for your custodian to transfer funds to you and then for you to make the rollover, your IRA custodian will withhold 20%. Because of the 20% withholding requirement, virtually all IRA rollovers are completed with the custodian-to-custodian method.

An IRA to Roth IRA rollover may also be permissible for you. Generally speaking, people with any adjusted gross income are permitted to transfer a regular IRA to a Roth IRA. The value of the IRA will be included in your taxable income, so you may owe a substantial income tax for the conversion.

The primary benefit of the conversion to the Roth is that a Roth IRA does not have a mandatory distribution requirement at age 73. The funds may be permitted to grow tax free and, at the discretion of the owner, may be withdrawn tax free during retirement years. If the owner of a Roth IRA does not make withdrawals, then the Roth may be transferred to children, who may make tax-free withdrawals over a term of ten years.

IRA Distributions

For a traditional IRA, there are specific rules on both contributions and withdrawals. Withdrawals for distributions are generally not taken before age 59½. With limited exceptions—such as uniform distributions over a lifetime, disability, separation from employment after age 55, or other exceptions—there is a 10% excise tax in addition to the regular ordinary income tax on withdrawals before age 59½. Therefore, very few individuals take early withdrawals before age 59½.

Between ages 59½ and 73, there is an optional period for withdrawals. The withdrawals are not required, but you may withdraw any amount. Of course, for a traditional IRA the amount withdrawn is taxable to you and no longer grows tax free in the fund. Therefore, you may not want to take withdrawals unless you actually need the funds for living expenses.

After you reach age 73, there are required minimum distributions (RMDs). The distributions start at approximately 3.8% at age 73 but increase with age each year. The distribution is calculated using your balance on December 31 multiplied by the appropriate percentage and must be taken by the end of the next year. The penalty for failing to take a required minimum distribution is 25%. If the plan participant corrects the failure in a timely manner, the excise tax on the penalty is further reduced to 10%.

While osteoporosis is more common in adults over the age of 60, it can also affect younger individuals as well. In fact, according to the Bone Health & Osteoporosis Foundation (BHOF), 50% of women and up to 25% of men in the U.S. over the age of 50 will break a bone due to osteoporosis. Here is what you should know.

Osteoporosis, called a “silent” disease, weakens your bones with no warning signs until a fracture occurs. Around 10 million Americans who are 50 or older have osteoporosis, and an additional 44 million have osteopenia (lower than normal bone density) – 80% of whom are women.

By the time most individuals reach their late 30’s, they gradually start losing some of their bone mass. For women, the biggest decline happens in the five to seven years following menopause, when estrogen levels—important for maintaining bone strength—drop sharply. Bone loss for men occurs much more gradually but, by age 70, osteoporosis is as common in men as it is in women.

To help you determine your risk of osteoporosis, the International Osteoporosis Foundation has a quick, online test you can take at RiskCheck.Osteoporosis.Foundation.

Bone Checkup

According to BHOF, women over 65 and men over 70 should have a dual energy X-ray absorptiometry (DXA) scan, which is a painless measurement of the calcium in your bones. Those at high risk should start around age 50. Factors that support early screening include a family history of osteoporosis, a broken bone after age 50, vitamin D deficiency, smoking, rheumatoid arthritis or use of medications that can weaken bones, such as steroid prednisone and certain antidepressants. Most bone density tests are covered by health insurance companies, including Medicare, and are done in hospital radiology departments, private radiology practices and stand-alone clinics.

Bone-Builders

If your bone scan finds that you have osteopenia but have a low to moderate 10-year fracture risk, lifestyle measures are usually the best course of action. Three important things you can do to boost your bone health include:

Get enough calcium and vitamin D: Calcium helps keep bones strong, and vitamin D helps us absorb calcium. Women over 50 and men over 70 need at least 1,200 mg of calcium per day from foods like dairy, canned sardines, kale, and fortified orange juice. All adults should get between 600 to 800 international units (IU) of vitamin D daily. Since this amount is not often obtained from just food, it is recommended to have your levels checked to see if you need a supplement.

Exercise: Low impact weight-bearing exercises, like walking, and strength training with light weights or resistant bands several times a week can help build bone strength, as well as improve balance and muscle strength.

Do not smoke: Women who smoke a pack of cigarettes per day as adults have less dense bones at menopause.

Osteoporosis Meds

If your bone density test finds that you have osteoporosis, your doctor will probably recommend medications. The first line of treatment is usually bisphosphonates such as alendronate (Binosto and Fosamax), risedronate (Actonel and Atelvia), and ibandronate (Boniva). These oral or injectable drugs slow the breakdown of bone but will not build it back.

For severe osteoporosis your doctor may prescribe an anabolic: teriparatide (Forteo), abaloparatide (Tymlos), or romosozumab (Evenity). These are typically given as daily or monthly injections, and increase the amount and strength of bones.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

October is National Cybersecurity Awareness Month. During this season, the IRS and Security Summit partners focus on protecting individuals from identity theft and fraud.

The holidays are a season of celebration. Millions of Americans shop online and browse on social media. However, fraudsters delight in knowing many individuals do not understand the best practices for online security. The holiday season can be an open door for swindlers who are "eager to swipe people's personal information” and use it for identity theft.

Security Summit members urge everyone to be vigilant and encourage parents to teach children and teens how to recognize and avoid online scams. Many children and teens have smartphones and spend time every day texting friends and using social media.

The IRS and the Security Summit Members offer specific tips for both individuals and their families. These tips are helpful and essential to protect yourself against fraudsters and scanmmers.

1. Learn to Recognize Scams — Fraudsters frequently claim they are from your bank or the IRS. You should recognize that scammers can trick your caller-ID to show the call is coming from your bank or the IRS. The IRS does not use email or social media to discuss your personal tax issues. If you receive a text or phishing email that looks suspicious, do not click on any attachments. You can forward phishing emails to phishing@IRS.gov.
2. Protect Personal Information (PI) — A fraudster will ask carefully-crafted questions that are designed to encourage you to disclose personal information. He or she may offer information initially to build a relationship with you. However, at some point, the fraudster will ask for your birthdate, address, age or financial information. He or she may also encourage you to log in to your bank account and disclose information from your bank account or your Social Security Number. You should be cautious and not share information. If you are contacted by phone, you should hang up and then call your financial institution or the IRS.
3. Update Passwords — Many individuals have 10 to 80 different online accounts. Nearly all major businesses ask you to create an account to track your online orders. It is important to maintain and update your passwords for these financial and business accounts. A good password contains a combination of capital letters, lower case letters, numbers and special characters. To help you keep track of multiple accounts with different passwords, it is convenient to use a password manager. The password managers on your smartphone, tablet or computer have high levels of encryption to store your passwords. You simply need to remember one master password for your password manager account. You must be very careful not to write down or disclose your master password.
4. Two-Factor Authentication — You should create extra security for all your financial accounts. These financial organizations offer two-factor authentication. You enter a password to log in to the account and then a text is sent to your phone with a six-digit number. After you enter both the password and the number, you will be able to access your account. While no security is perfect, two-factor authentication is a significant increase in security and should be used for your financial accounts.
5. Update Computer Software — Many hacking attempts succeed because the fraudster finds a "hole" in your computer or phone software. It is generally possible with most operating systems to enable automatic updates. Your computer and phone software will usually be updated once or twice a week by the main vendor. These updates are necessary because there are always new potential security risks with the complex software on your computer or your phone.
6. Avoid Public Wi-Fi — Many restaurants and commercial organizations allow access to public Wi-Fi. This public Wi-Fi may be used if you are simply browsing the internet, and your device has updated antivirus software. However, you should never log in to any personal accounts, especially your financial accounts, on public Wi-Fi. With your financial accounts, you should use a virtual private network (VPN) for access or password-protected Wi-Fi in your home or place of business.

Most memory care units, or special care units, are housed within assisted living or nursing home facilities. They provide many benefits including staff that are trained in dementia care, offer individualized care that minimizes the use of risky psychotropic medications, and create a home-like environment with activities designed to improve residents’ quality of life. To assist you in finding a suitable facility, consider the following steps.

Make a list: To identify memory care residential units in your area, ask your parent’s doctor for a referral or use an online search tool. It is beneficial if the facilities on your list are close to family and friends who can visit often, as regular visits often enhance residents’ overall wellbeing.

Research your options: Once you have made a list, call your local long-term care ombudsman. Long-term care ombudsman regularly visit assisted living and nursing homes and address complaints and advocate for quality care. They also provide information to the public regarding facilities, including which facilities have experienced problems in the past.

If you are considering a memory care unit within a nursing home facility, use Medicare’s nursing home compare tool (Medicare.gov/care-compare). This online tool provides a five-star rating system that can utilize maps and filters to help identify providers that fit your parent’s needs.

Call the facilities: Once you have identified a few potential facilities, contact them to find out if they have any vacancies. Also, you should ask other questions such as if they provide the types of services your parent needs, their fees and if they accept Medicaid.

Tour your top choices: During your tour, notice the cleanliness and smell of the facility. Is it homey and inviting? Does the staff seem responsive and kind to its residents? Taste the food and if possible, talk to the current residents’ family members.

Other areas to ask about are staff screening and training procedures, turnover rates and their staff-to-resident ratios. Confirm that they provide quality activities to keep your parent engaged and learn how they respond to residents who may wander or become confused. It is also a good idea to make multiple visits to the facility including an unscheduled visit in the evening or weekend when the facility is more likely to be understaffed.

Since transitions can be unsettling it is best to find a facility that your parent will be able to stay at for the foreseeable future. It is best to find out what, if any, health conditions might require your parent to leave the facility or move to a higher and more expansive level of care.

To help you choose a facility, the Alzheimer’s Association provides a list of questions to ask at CommunityResourceFinder.org/Alz/Tips – click on “Tips for choosing a residential care facility” under Housing Options.

Paying for care: The average cost for memory care in an assisted living facility is approximately $6,000 per month. The average cost increases to over $8,500 per month for memory care at a nursing home care. However, keep in mind though that the costs can vary widely depending on location and services.

Given that Medicare does not cover long-term care, most residents pay for care from either personal savings, a long-term care insurance policy or through Medicaid (if available) once their savings are depleted. If your parent is a veteran, they may be able to get funds through the Veteran Affairs’ Aid and Attendance benefit. To learn more, ask the facility director or contact the regional VA benefit office at 1-800-827-1000.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

The SSI program, which stands for Supplemental Security Income, is a program administered by the Social Security Administration (SSA) that provides monthly cash benefits to people that are disabled or over age 65 based on financial need.

Currently, around 7.5 million people are receiving SSI benefits, but many more are now eligible as the SSA recently expanded access to benefits by modifying some of the rules. Here is what you should know.

Eligibility Requirements

To qualify for SSI, an applicant must be age 65 or older, blind or disabled, and a U.S. citizen or lawful resident. Recipients must also have limited income and assets.

Individual income must generally be under $1,971 per month, or $2,915 for couples. Countable income includes wages, pension payments, unemployment, Social Security benefits or gifts from friends. In-kind distributions such as free food or shelter are also included.

Assets must also be less than $2,000 for individuals or $3,000 for couples. This includes cash, bank accounts, other personal property, and any asset that could potentially be converted to cash. A personal residence, household goods and one vehicle, along with life insurance policies and burial funds valued under $1,500, do not count towards countable assets.

In 2024, the maximum SSI payment is $943 a month for an individual or $1,415 a month for a couple. However, the amount a recipient receives in SSI benefits may be reduced based on income, living situation and some other factors.

To help determine whether an applicant is eligible for SSI, the Social Security Administration’s benefits screening test is available at SSAbest.benefits.gov. This online questionnaire takes approximately five minutes to complete and screens for a variety of benefits, not just SSI.

It is important to note that most states – except Arizona, Arkansas, Mississippi, North Dakota, Tennessee and West Virginia – supplement the federal SSI payment with payments of their own. In some of the states that pay a supplement, an applicant may qualify for the state payment even if they do not meet the federal SSI eligibility criteria.

How to Apply

If an applicant believes they may be eligible for SSI, they can begin the application process and complete a large part of it online at SSA.gov/apply/ssi. If the applicant is disabled, they can apply for both SSI and Social Security Disability at SSA.gov/disability. An applicant may also call 800-772-1213 and set up an appointment with their local Social Security office.

To expedite the application process, applicants should have their Social Security number, birth certificate or other proof of age readily available. Information about the home where they live, such as a mortgage or lease with the landlord’s name is also required. Payroll slips, bank books, insurance policies, burial fund records and other information about the applicant’s income and assets may also be needed. In addition, proof of U.S. citizenship or eligible noncitizen status is necessary. If they are applying for SSI because they are disabled or blind, the names, addresses and telephone numbers of doctors, hospitals and clinics that have information related to their condition will also need to be provided.

For more information visit SSA.gov/ssi or see Social Security’s online SSI publication at SSA.gov/pubs/EN-05-11000.pdf.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

The one exception is for IRA owners who turned age 73 in 2024. These individuals may delay their first RMD until April 1, 2025. However, if they delay the first RMD, they will also need to take a second RMD by December 31, 2025.

RMDs are generally required for most qualified retirement plans. They apply to three types of IRAs: Individual Retirement Arrangements, Simplified Employee Pension (SEP) IRAs and Savings Match Plans for Employees (SIMPLE) IRAs.

The RMDs also apply to traditional 401(k), 403(b) and 457(b) plans. An exception to the RMD withdrawal requirement is a Roth IRA, Roth 401(k) or Roth 403(b) – there are no 2024 distribution requirements for these plans if the original owner is living.

Most taxpayers take the RMD based upon the Uniform Lifetime Table in IRS Publication 590-B. This table assumes there is a beneficiary 10 years younger than the IRA owner and calculates a distribution amount based on both ages. If the IRA owner has a spouse more than 10 years younger, a special calculation is applicable.

Owners of multiple IRAs must calculate the RMD for each plan. However, the owner can elect to withdraw the total RMD amount from any IRA plan.

Some employees over age 73 who are still working and are not major owners of a business may be able to defer RMDs until after retirement. You should consult your tax advisor if this exception applies to you.

Many online calculators are available to determine your RMD. Most large financial companies offer an online determination of the correct amount. RMDs start at approximately 3.7% of the December 31 IRA balance. They increase each year after age 73. There are also online worksheets on IRS.gov that may be helpful.

The IRS released new IRA distribution tables for 2022 and subsequent years. The new tables reflect longer life expectancies and RMDs are somewhat reduced.

Editor’s Note: An excellent way to fulfill an RMD is to give part or all of the IRA payment to a qualified charity. Qualified charitable distributions (QCDs) for individuals over age 70½ may fulfill part or all of your RMD. The QCD is a transfer directly from the IRA custodian to a qualified charity. For 2024, you can transfer up to $105,000, which is the maximum annual limit and is indexed for inflation. It is important to act quickly if you plan to do a QCD this year. Your QCD must be completed by December 31, 2024.

It is a good idea to compare your Medicare coverage options this fall. Many Medicare beneficiaries with Part D coverage can lower their prescription drug costs by shopping among plans each year during the open enrollment season, which runs from October 15 through December 7.

With some research, you could find another Part D plan in your area that covers the drugs you take with fewer restrictions or with lower costs. While you are shopping, keep in mind that the Inflation Reduction Act will cap annual out-of-pocket costs at $2,000 for all Medicare Part D beneficiaries.

Here are some tips and tools to help you shop and compare Part D plans.

Plan Finder Tool

You can easily shop for and compare all Medicare drug plans in your area and enroll in a new plan online. This is a very convenient option and takes only a few minutes.

To get started online, go to Medicare’s Plan Finder Tool at Medicare.gov/plan-compare. You can do a general search on the right side of the page, under the title “Continue without logging in.” If you wish to save your drugs and pharmacy information, you can log into or create a Medicare account on the left side of the page.

To begin finding plans on Medicare’s Plan Finder, type in your ZIP code and choose the type of coverage you are looking for. You will also be asked to enter information on the drugs you take, the pharmacies you use and whether you are interested in a mail order option.

The Plan Finder will display results for plans in your area. Be aware that a plan may not cover all the drugs you take, but it may cover alternatives. It will also tell you if the plan has a deductible and the amount of the monthly premium. 

Initially, the plans will be sorted by “lowest drug and premium cost” for the year. This is the closest estimate to what you may pay out of pocket for your Part D coverage for the year. You can select “plan details” to find out more specifics about coverage, including any coverage restrictions that might apply to your drugs. Before enrolling, it is a good idea to call the plan directly to confirm any information you read on Plan Finder since information found online may not be current.

If you need help, contact Medicare at 800-633-4227 and representatives will assist you with finding your plan options over the phone. You may also contact your State Health Insurance Assistance Program (SHIP), which provides free and unbiased Medicare counseling. To find a local SHIP counselor call 877-839-2675 or see ShipHelp.org.

Any changes you make to your coverage will take effect January 1, 2025. If you take no action during open enrollment, your current coverage will continue next year.

Extra Help

If you are low income or need assistance paying for your medication, you may be eligible for Medicare’s Extra Help program. The program is a federal low-income subsidy that helps pay Part D premiums, deductibles and copayments.

To be eligible for Extra Help, your annual income must be under $22,590 or $30,660 for married couples, and your assets (not counting your home, personal possessions, vehicles, life insurance policies or burial expenses) must be below $17,220 or $34,360 for married couples. For more information or to apply, call Social Security at 800-772-1213 or visit SSA.gov/Medicare/part-d-extra-help.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living” book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization’s official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.