A QCD provides an excellent opportunity for retirement account owners to “give something back” from a lifetime of savings. With proper foresight, and a careful eye on distribution planning, the QCD can be a “win-win,” both for an account holder looking for a smart tax-planning strategy and the qualifying charity that stands to benefit.

 

Leveraging a QCD to lower one’s Adjusted Gross Income could potentially reduce taxes based on income, such as Social Security benefits or Medicare Parts B and D premium surcharges. Available to owners and beneficiaries age 70½ or older, a QCD offers tax-free IRA distributions of up to $100,000 in 2023 ($105,000 in 2024). 

 

Please check with your tax and legal advisor to discuss how to maximize your tax benefits. Plus, they can help you with new Secure Act. 2.0 rule changes and other rules you must be familiar with to ensure tax-free QCD treatment.

 

For your convenience download the pdf form for information on how to start the process.