When it comes to your question about reducing your RMD so that your benefits are not taxable, you want Social Security.

For example, if you can go to a situation where only 50% of your Social Security is taxed instead of 85%, this could be advantageous. The same happens if you go from 50% to 0%. If you cannot move between these thresholds, there may be much to be done.

In your case, assuming your RMD They are the only income you have apart from the Social Security, there are two main strategies that would take into account.

Suppose you are already ready or near the point where 85% of your Social Security benefits are taxing. In this case, get more profitable Anger This year, as you suggested, it could be a useful strategy. You would increase your current tax bill, but you could potentially reduce Future RMDs to the point where they only pay up to 50% of your Social Security benefit in the coming years.

One way to do this would be to withdraw additional money and use them for whatever you want. Maybe there is a home project that you would like to approach, or maybe, as you suggested, you would like to give your children or grandchildren money. You would not have any tax deduction for the gift, but they would not confront any negative tax consequences. Only keeps the Annual exclusion of gift tax ($ 18,000 by 2024) in mind as well as the Lifelong exemption limit ($ 13.61 million by 2024).

Another option, and potentially the most fiscal efficient way, is to do convert part of this traditional anger money into an IRA ROTH. The conversion amount would continue to be taxable as revenue, but would reduce future RMD and get money in a Roth, where it could grow free of taxes and would no longer be subject to RMD.

Any of these strategies would require good attention to your total tax income and how your marginal tax rate affects. If you can do it in a way that reduces the future taxation of your Social Security benefits without pushing you to higher tax sections now, you could surely save a little long-term money. (But if you need additional guidance on this strategy, A financial advisor can help.)

Another option with potential for a more immediate benefit is to do what is called in Qualified charity distribution (QCD). This is when you bring money to a charitable organization eligible directly from an anger. The charitable contributions meet your RMD requirement and reduce your tax income, which would reduce the amount of your tax security benefit.

This is a good strategy to consider if you do not need the money and there is one or more charitable organizations that you want to support. However, although it will reduce your tax bill, it will still leave you less money in general than simply pay the taxes you will have to pay differently. (And if you need help with tax planning and strategic donation, consider working with a financial advisor.)

Taxes are always worth considering as part of your financial planning, but they are only part of the general landscape. What matters most is that you have the money you need to keep the life you want to live.

The above strategies could support these personal goals by reducing your long -term tax bill, facilitating the payment of the things you care about. It is also possible to take them too far, reducing your tax bill at the expense of not having the money you need when you need them. Please be careful while considering your options to move forward.

• Into Financial Advisor It can help you plan the Social Security and to integrate your profits into a retirement income plan. Finding a financial advisor should not be difficult. The free smartasset tool It relates to a maximum of three verified financial advisers who serve your area, and you can have a free introductory call with your advisor to match to decide which one you think is suitable for you. If you are ready to find an advisor that can help you achieve your financial goals, start now.

• Understanding how your claim age affects your Social Security benefits is vital to making an informed decision on when you start collecting. Remember, wait until the age of 70 Increases your benefits to 32% While claiming as soon as 62 will result in a result 30% reduction in life benefits. However, the right decision for you can only be how long you expect to live.

• Keep an emergency background by hand if you have unexpected expenses. An emergency fund should be liquid, in an account that is not at risk of significant fluctuations such as the stock market. The compensation is that the value of liquid cash can be eroded by inflation. But a high interest account allows you to gain compound interests. Compare the savings accounts of these banks.

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Matt Becker, CFP®, is a Smartasset financial planning columnist and answers readers’ questions about personal finance and tax topics. Do you have a question you would like to answer? Send an email to askanadvisor@smartasset.com and your question can be answered in a future column.

Note that Matt does not participate in the Smartasset AMP platform, nor is he a Smartasset employee, and has received a compensation for this article.

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The publication Ask an advisor: How can I reduce my RMD to only $ 25,000 so that my social security is not recorded? appeared first Smartasset Smartreads.