QUALIFIED CHARITABLE DISTRIBUTIONS (“QCD”) FROM YOUR IRA

Owners of individual retirement accounts who are at least age 70 ½ can make a direct transfer of funds from an IRA, payable to a qualified charity. This is called a qualified charitable distribution (or “QCD”). QCDs can be counted toward satisfying your required minimum distribution (“RMDs”) for the year, as long as certain rules are met. In addition to the benefits of giving to charity, a QCD excludes the amount donated from taxable income, which is unlike regular withdrawals from an IRA. Keeping your taxable income lower may reduce the impact to certain tax credits and deductions, including Social Security and Medicare. Also, QCDs don’t require that you itemize, which due to the recent tax law changes, means you may decide to take advantage of the higher standard deduction, but still use a QCD for charitable giving. The maximum annual amount that can qualify for a QCD is $100,000. In addition, for a QCD to satisfy your current year’s RMD, the funds must come out of your retirement account by the RMD deadline; which is normally December 31st.

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