IRA Qualified Charitable Distributions

If you are 70-1/2 or older, charitable giving from your IRA can help reduce your taxable income.  And for those over 73 who must take a Required Minimum Distribution (RMD) from your IRA,  a charitable distribution is an excellent option if you do not need the income.

Up to $105,000 of your RMD can be used to support a charity.   Called a Qualified Charitable Distribution (QCD), you pay no income taxes on the distribution from your IRA.  But be sure to have the plan administrator of your IRA issue the distribution directly to F4F.  Do not take the distribution to yourself and then make the donation to F4F, or any charity – this would negate the benefit, and you would be taxed on the distribution.  

The transfer generates neither taxable income nor a tax deduction, so you benefit even if you don’t itemize your deductions.  Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.

Please contact your financial advisor for additional information.