Qualified Charitable Distributions

Is it time for your Required Minimum Distribution (RMD) from your pre-tax retirement account?

Lower your taxes with a Qualified Charitable Distribution (QCD)

You need to begin taking required minimum distributions (RMDs) from your pre-tax retirement accounts once you reach age 72. But if you are financially secure and don’t need this distribution, it can push you into a higher tax bracket and increase your taxes. You can directly transfer your RMD from your retirement account to charity and this is called a Qualified Charitable Distribution (QCD). The IRS allows individuals over age 70 and a half to donate up to $100,000 per year from a retirement account directly to charity, with no negative tax impact. The benefits of making a QCD include the following:

• Allows your philanthropy to make a big impact - maximize your charitable impact by donating the full RMD amount directly to a charity or charities of your choice.
• Reduces your taxable income - Up to $100,000 can be given per year, per taxpayer. Each individual taxpayer can contribute up to $100,000 per year as a QCD, which means if you’re married filing jointly, you can donate up to $200,000 per year.
• Flexibility - A taxpayer has flexibility to make one large QCD or several smaller contributions. QCDs can be made from more than one retirement account type, including traditional, inherited, SEP and SIMPLE IRAs.

While a qualified charitable distribution can be a great way to minimize your taxes and maximize your charitable impact, it may not be the best strategy for everyone. Consult with your financial planner to decide if a QCD is right for you.

Mailing Address: East Coast Greenway Alliance Attn: Debbie West 123 West Main Street, Suite 220 Durham, NC 27701

Tax Identification Number: 04-3326812. 

The East Coast Greenway Alliance is tax exempt under section 501(c)(3) of the Internal Revenue Code.