Do you give money to your church? (or another charity)

Do you make charitable contributions to your church and how do you make those charitable contributions?  Do you write a check from your checking account or contribute cash?

Did you know there is a way to make that contribution from your IRA and it is tax free?

It is called a Qualified Charitable Distribution ( QCD ) for short.  A QCD is a nontaxable distribution made directly by the trustee of your IRA (note there are some exceptions) to an eligible charitable organization.

You must be 70 1/2 or older at the time you make the QCD, it also cannot exceed $100,000 annually, The contribution is made directly from your IRA account to the charity or your choice, ex. your church.  It is not taxable, because it goes direct to the charity and is not a distribution to you, which would be taxable.

There are a couple of exceptions to the rule. Donor-advised Funds and Supporting Organizations do not qualify. An example of these would be a donation to a Foundation. If you would like to learn more about a QCD and how they work, please call us for more details!