Save on Taxes with a QCD

QCD stands for Qualified Charitable Distribution.

If you are charitably inclined and 70 ½ or older, you can donate up to $105,000 this year to one or more qualified charities from your IRA (not Simple or SEP) rather than taking your RMD. 

Married couples can donate up to $210,000.

If you are of RMD age, a QCD counts as a RMD but you are not taxed on the distribution saving you tax dollars. 

The QCD has to be transferred directly from the IRA custodian to the qualified charity. 

You will receive a 1099R for the IRA but there is no box that says it was a QCD. 

It is up to you to tell your tax preparer that your RMD was a QCD and they will enter it on your 1040. 

A QCD may or not be the best option for you. 

Please email or call me to discuss this in more detail.