BACKQualified Charitable Distributions (QCD) allow individuals 70 ½ or older to donate funds to a charity of their choosing directly from their IRA. This strategy can be used in place of, or to reduce, a client’s Required Minimum Distribution (RMD) for any given tax year. This direct “distribution” to a charity would result in less “earned” income realized by the client, and potentially help them avoid being pushed into a higher tax bracket or triggering higher taxes on their Social Security income.
The Season of Giving – Qualified Charitable Distributions
Author:
Daniel Strine, CPRC®
Published on: 20211201