Qualified Charitable Distributions (QCDs)
December 12, 2024
The holiday season is a time of giving. Throughout the world, there are countless nonprofit organizations for nearly any cause that can be imagined. All are grateful for the support they receive.
Qualified charitable distributions (QCDs) are otherwise taxable distributions from an IRA (other than an ongoing SEP or SIMPLE IRA) owned by an individual who is age 70½ or over. The QCDs are paid from the IRA directly to a qualified charity1.
This donation provides an obvious positive impact for a cause in which you support . A QCD also gives you the knowledge that your donation is making maximum impact since it goes directly to the charity. Some donations, like the extra dollar you give at a checkout, might only be a fraction of itself by the time it gets to the intended recipient.
On the personal side, charitable giving benefits your next tax bill. Taxes will always be an expense in some amount or another. But the amount you can deduct due to charitable giving allows you control over where your money goes. Additionally, if you are over the age of 70½ and have a Required Minimum Distribution (RMD) you must take for the year, QCDs may count toward satisfying that amount.
The spirit of helping is strong with us as well, which is why we are always here for you. Contact us today with any questions. We are happy to help you be sure about your financial strategies.