Tax Topic

Qualified Charitable Distributions (QCDs)

If you are over 70½, have a Traditional IRA account, and want to make a donation to a qualified organization such as a 501(c)(3) charity/non-profit, church, some government entities (like a public school), or a donor advised fund; a relatively new tool is available that might help you tax-wise. Qualified Charitable Distributions are payments you can have made by your Traditional IRA account’s trustee directly to a qualified organization as donations that count toward your annual required minimum distribution. Even though a QCD comes out of your IRA, it’s NOT taxable income like a normal Traditional IRA distribution. It effectively allows you to make a non-taxable contribution to the qualified organization. It counts in the year the QCD is received by the receiving organization. Let us know if you want to discuss QCDs further. And if you do one, make sure you include that information along with the Form 1099-R you receive about your IRA distributions when you submit to us to prepare your tax return.

More information on this topic with the IRS can be found here: QCDs | Internal Revenue Service (irs.gov)


< Back to Tax Topics page