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Navigating Qualified Charitable Distributions in 5 Easy Steps...

Navigating Qualified Charitable Distributions in 5 Easy Steps...

September 21, 2022

It is better to give than receive, but in this case, you get both. With a QCD, you are able to give and receive a tax break.

At 70 1/2 or older, the IRS tax code allows you to withdraw money from your IRA and gift the withdrawal to a charity, and the distribution is tax-free. Those age 72 or older must take a minimum distribution (RMD) each year to satisfy IRS requirements. Taking advantage of the Qualified Charitable Distribution (QCD) rules allows you to meet the RMD requirements and not be taxed on the distribution. Imagine not having to pay tax on a distribution from your IRA. Yes, it is possible! This week's blog discusses how to navigate the Qualified Charitable Distribution rules in 5 easy steps.  

To learn more, click on the link below to read, Navigating Qualified Charitable Distributions in 5 Easy Steps.

Navigating Qualified Charitable Distributions in 5 Easy Steps

Qualified Charitable Distributions are the perfect opportunity to give to your favorite charity(s). The non-profit could be your church, a private foundation, or any organization that meets the proper requirements to receive tax-free donations. The QCD can be for one or more organizations and will occur annually once set up. If you need to add or change a charity, you will need to inform us before the annual minimum distribution is due.

QCDs can be canceled before the processing date if there is sufficient time. If canceled, you must set up an RMD to satisfy the annual minimum distribution. 

I hope this blog has given you a little more clarity about RMDs and QCDs. We want you to be aware, but it is our job to be proficient and make this easy on you.

These topics may leave you with questions, so please reach out so we can guide you through this process. Please feel free to share if this information can help someone you know.

David S Dixon, CFP®