IRA Rollover – Qualified Charitable Deduction (QCD)
If you are 70½ or older and required to take a minimum distribution from your individual retirement account (IRA) there is now a helpful tax-savings measure that allows you to use IRA fund for a charitable contribution.
Traditionally, when you take money out of an IRA you’d have to pay taxes, but if it’s a Qualified Charitable Distribution (QCD) gifted directly to your favorite non-profit, you would not have to pay taxes. Instead of the taxes owed on the distribution, you can make a charitable gift of up to $100,000.
Congress has made this provision permanent, so now every year you can donate from an IRA without having to count the distributions as taxable income. Also, because this applies to each individual’s IRA a spouse can donate their IRA too and double your family’s contribution.