I'm 72 and need to take my required minimum distribution from my IRA by the end of this year. The value of my account is down dramatically. Is there anything I can do to reduce what I might otherwise have been required to withdraw?

I'm 72 and need to take my required minimum distribution from my IRA by the end of this year. The value of my account is down dramatically. Is there anything I can do to reduce what I might otherwise have been required to withdraw?

Unfortunately, the required minimum distribution (RMD) rules require distributions for the current year to be based on the value of the account on December 31 of the prior year. Unless Congress changes this rule (which has been suggested, but no formal bill has yet been introduced), you'll need to figure your RMD on the value as of December 31, 2007, even though this value was probably higher than the account's value today (which means a larger distribution relative to the value of the account today).

You do, however, have one option for reducing your tax cost for the distribution: Because you are at least 701/2, you can make a direct transfer of the RMD to a public charity; the RMD is not included in income, although no separate charitable contribution deduction is allowed. The limit on this transfer: $100,000.