Charitable giving from IRA now easier

Giving to charity just became a little easier for those over the age 70. The PATH Act of 2015 made permanent the popular Qualified Charitable Distribution (QCD), which allows those who are at least 70 ½ at the time of the transaction to make a Qualified Charitable Distribution of up to $100,000 directly from an IRA to a qualified charity. While the contribution is not claimed as an itemized deduction, neither is the distribution from the IRA taxed as income.

One of the potential benefits of this move is that the QCD reduces your adjusted gross income, which can impact your itemized deductions, investment income tax, and other tax calculations.
Further, the QCD counts toward your Required Minimum Distribution (RMD) for the year.

To take advantage of this, you must be sure that the contribution is made directly from your IRA trustee to the qualified charity. If you take a distribution then write checks to the charity, you will be taxed on the distribution.

If you are interested in learning more about this option, please contact us.