Top 3 Reasons for Charitable Gifts of IRA - Qualified Charitable Distributions (QCD)*

1. The distribution can fulfill part or all of the required minimum distribution for those over 70 1/2 without increasing taxable income, which can impact taxes on social security income and Medicare premiums.

2. The taxes saved can make the distribution much more tax efficient than donating directly to a charity. This will be particularly relevant with the changes in the standard deduction which will lead to fewer people itemizing deductions.

3. For individuals with large amounts in both IRA and taxable investment accounts who have been both charitable and individual beneficiaries, distributing out of the IRA as part of an estate settlement can leave a much higher after after-tax inheritance for family members.

And, you no longer have to wait until the end of the year to allocate IRA distributions!

3 Easy Steps

1. Contact your IRA Advisor.

2. Ask for their Distribution Request Form.

3. Submit the completed form to your advisor.

* A Qualified Charitable Distribution (QCD) is an otherwise taxable distribution from an IRA (other than an ongoing SEP or SIMPLE IRA) owned by an individual who is age 70½ or over that is paid directly from the IRA to a qualified charity