The Best IRS Tax Gift
If you’re not at least 70½, you can skip this article. Forward the link to someone that is. They will appreciate your thoughtfulness. If you are at least 70½, this is for YOU.
A Qualified Charitable Distribution may be THE best tax gift that the IRS has given you.
At 70½ or older (and for some, now 72), IRS rules require you to take required minimum distributions (RMDs) each year from your tax-deferred retirement accounts. This year many of you will waive the RMD due to the CARES Act.
This additional taxable income may push you into a higher tax bracket and may also reduce your eligibility for certain tax credits and deductions. To eliminate or reduce the impact of RMD income, charitably inclined investors may want to consider making a Qualified Charitable Distribution (QCD).
Although the recent SECURE Act (passed at the end of 2019) made a number of tax changes, it DID NOT change the QCD age or guidelines.
This is still an excellent strategy for those over 70½ to give to ministries, churches, and non-profits that meet the guidelines.
Review the QCD Rules here for more information and call me if you have questions.
