Eligible IRA owners who are charitably inclined may be able to achieve two goals at once. Using a transfer known as a qualified charitable distribution (QCD), taxpayers who are at least 70½ can transfer up to $100,000 per year to a 501(c)(3) tax-free. Married couples where both spouses meet the age requirement and have IRAs can donate up to $200,000 per year. They can’t take a charitable deduction, but the donated amount is removed from their taxable income, which may make them eligible for other tax breaks. And for taxpayers who are at least age 73 by year end, a QCD donation can be counted as part of the IRA owner’s annual required minimum distribution. Contact us with questions.
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