IRAs: Qualified Charitable Distribution (QCD)
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Explore the benefits of Qualified Charitable Distributions (QCDs) from IRAs, a tax-efficient way to support charitable causes. This guide outlines the requirements and limitations for making QCDs, including age restrictions, distribution limits, and the effect on required minimum distributions (RMDs). Ideal for IRA holders over 70½ looking to reduce taxable income while contributing to eligible charities.
Highlights:
• Eligibility and Limits: Must be at least 70½ years old to make a QCD, with an annual exclusion limit of $105,000 per taxpayer.
• Tax Benefits: QCDs are excluded from taxable income, potentially lowering AGI and avoiding higher tax brackets.
• RMD Fulfillment: QCDs can satisfy all or part of the required minimum distribution without increasing taxable income.
• Qualified Charitable Organizations: QCDs must be made directly to eligible charities and cannot be claimed as a charitable deduction.
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