Making qualified charitable distributions (QCDs) is one way for older taxpayers to satisfy their IRA or other qualified plan’s required minimum distributions (RMDs). This is an especially attractive option if you’re philanthropically minded. With a QCD, you can distribute up to $100,000 per year directly to a 501(c)(3) charity after turning age 70½. While you can’t claim a charitable deduction, the distribution is removed from your taxable income. Under the recently passed SECURE 2.0 law, you can now make a one-time QCD transfer of up to $50,000 through a charitable gift annuity or charitable remainder trust (as opposed to directly to the charity). Contact us for more information.
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