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QCD

A Qualified Charitable Distribution (QCD) refers to a direct transfer of funds from an Individual Retirement Account (IRA) custodian to a qualified charity, such as Meeting of Our Lord, as established by the SECURE Act 2.0. Individuals aged 70.5 or older are eligible to utilize this provision.

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The advantages of a QCD include its contribution towards fulfilling Required Minimum Distribution (RMD) obligations without being classified as a taxable distribution, thereby helping to maintain a lower taxable income, which is beneficial for calculating taxes on Social Security and Medicare premiums. In contrast, if an individual withdraws funds from an IRA and donates them to charity, they may not receive a tax benefit due to the standard deduction, and this could potentially increase their tax liabilities.

 

The maximum allowable QCD transfer is $105,000 for the year 2024, subject to inflation adjustments in subsequent years. It is important to note that any QCD amount exceeding the RMD does not carry over to future years, and unutilized QCD amounts cannot be rolled over. Eligible IRAs for QCDs include Traditional, Rollover, and Inherited IRAs. The ideal candidates for QCDs are those who wish to avoid RMD payments, do not require the funds, and seek to support charitable causes without incurring tax liabilities on their RMDs. For further details, please refer to the IRS regulations.

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IRS about QCD

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Questions? Contact me or your tax advisor.

 


William R. Slepcevich
Wealth Manager

ChFC, CLU
www.sfgnaples.com
­­­­­http://www.linkedin.com/in/williamrslepcevich

 

 

Slepcevich Financial Group

2375 Tamiami Trail North, Suite 208

Naples, Florida 34103

239-435-9433 Fax: 239-435-0104

www.sfgnaples.com

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