The holiday season is a time of giving. Throughout the world, there are countless nonprofit organizations for nearly any cause that can be imagined and all are grateful for the support they receive.

Qualified charitable distributions (QCDs) are otherwise taxable distributions 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 charity¹. 

The obvious impact is the help your donation provides for whatever cause you choose. A QCD will also give you the knowledge that your donation is making maximum impact as it goes directly to the charity, unlike the extra dollar you give at a checkout that might be a fraction of itself by the time it gets to the intended recipient. 

On the personal side, charitable giving can also benefit your next tax bill. Taxes will always be an expense in some amount or another, but the amount you can deduct due to charitable giving allows you to have more control over where your money goes. Additionally, if you are over the age of 70½ and have a Required Minimum Distribution you must take for the year, QCDs can count towards satisfying that amount.

The spirit of helping is strong with us as well, which is why we are always here for you. Contact us at 678-539-9518 with any questions you may have that can help you be sure about your financial strategies.

1. https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-distributions-withdrawals

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This blog is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation.