Saving & Spending

Qualified Charitable Distributions Can Lower Your Taxes! Find Out How

How can Qualified Charitable Distributions (QCD) save you tax money?

Qualified Charitable Distributions (QCDs) can not only allow you to help other people in need, but they can also help your finances. How? By saving you the money you would otherwise have to redirect to your taxes.

People aged 70 and over who don’t want to deal with the hassle of income tax or don’t rely on the income from their Required Minimum Distributions (RMD), can very well use QCDs to their advantage. Read on to find out how you can beat the system in a smart but also helpful way!

What is a Qualified Charitable Distribution (QCD)?

A Qualified Charitable Distribution (QCD) is a direct distribution paid to a qualified charity from your custodian IRA. Such direct transfers can be made to cover the Required Minimum Distribution (RMD) which must be withdrawn when the holder turns 72, in the case of tax-deferred retirement accounts such as IRAs.

The distributions are not taken into account for your Adjusted Gross Income, not in the way regular distributions count to AGI.

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M.M.

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