Qualified Charitable Distribution:
If you are 70.5 or older and are required to take a Required Minimum Distribution from your IRA the tax code allows you to donate that money directly to charitable organization without that gift counting as income.
Under the tax code you are allowed to excluded from gross income for income tax purposes of up to $100,000 (for each IRA account owner) for “qualified charitable distributions” from an IRA. The distribution will count toward your Required Minimum Distribution (RMD). The tax code requirements for a “qualified charitable distribution” are as follows:
- The distribution must be made from an IRA (other retirement accounts are not eligible).
- The recipient must be an eligible charitable organization.
- The IRA’s owner must be at least 70½ years of age.
- The distribution must be made directly to the charity and must be received or postmarked by December 31.
Email Margie Turner at email@example.com with questions or assistance with stock or retirement giving transfers.