Qualified Charitable Distribution
QCD: A Wise Charitable Gift – A Qualified Charitable Distribution (QCD) is a tax-efficient way for individuals who are 70½ years old or older to donate money to eligible charitable organizations directly from their Individual Retirement Account (IRA) without incurring income tax on the distribution.
Benefits
- Can count towards the required minimum distribution (RMD) that must be taken annually from an IRA, up to a maximum amount of $105,000 per year, which can help reduce the tax burden on IRA distributions.
- A QCD can be a tax-efficient way for individuals aged 70½ or older to donate money to charity
- Maximizes charitable impact and potentially avoids tax implications that may come with taking a traditional IRA distribution.
