Reduce Taxable Income with a Qualified Charitable Distribution (QCD)
Are you over 70 ½ and interested in a way to reduce your taxable income and also bless your favorite charity? You may want to consider doing a Qualified Charitable Distribution (QCD).
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Normally, taking your required minimum distribution (RMD) from your IRA or other retirement account is a taxable event. However, by choosing to do a QCD, your distribution is not included in your federal taxable income. Thus many who will not be eligible to itemize their deductions under the new tax law in 2018, will still benefit from their charitable contributions done as a QCD. All you have to do is have whoever directs your IRA account send the check for all or a portion of your RMD directly to the charity you chose instead of sending it to you! This will satisfy both your RMD requirement and your desire to bless a local non-profit! Let us know if we can assist you with your particular situation and potential tax savings.