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There are many different ways you can donate to your favorite charity (Like CTC!) this holiday season! One way is by making a Qualified Charitable Distribution (QCD). 


A Qualified Charitable Distribution (QCD) is a reportable distribution of funds from your IRA that are payed directly to a qualified charity. Your QCDs may be used to meet  your required minimum distributions (RMDs) for the year (as long as certain rules are met.) 


What are the requirements?

  • You must be 70.5 or older
  • The maximum annual amount that can qualify is $100,000
  • Married individuals filing a joint return may donate up to $100,00  from each spouse’s own IRA ($200,000 total).
  • To count towards your current year’s RMD,  funds must be distributed from your IRA by December 31.


What type or IRA accounts are eligible for a QCD?

  • Traditional IRA
  • Inherited IRA
  • Roth IRA
  • SEP IRA (inactive plans only)
  • SIMPLE IRA (inactive plans only)


What type of charities qualify for a QCD?

A charity must be a registered  501(c) (3) organization in order to qualify to receive tax-deductible contributions. 


Some charities that do not qualify for QCDs are:

  • Private foundations.
  • Supporting organizations (i.e. charities carrying out exempt purposes by supporting other exempt organizations, usually other public charities).
  • Donor-advised funds which public charities manage on behalf of organizations, families, or individuals.


Where can I find more information on QCDs?

For more information on QCDs, visit IRS.gov, or  consult a professional tax advisor.


The information in this blog is not meant to be tax advice, and anyone considering a QCD should consult their tax advisor. A professional tax advisor will be able to ensure your IRA and the charity you choose are eligible, and all other QCD requirements and documentation are met.