At the AFNA Conference this week, Tom Byrne brought to my attention a section of the IRS Code regarding Qualified Charitable Distribution (QCD), which may be of benefit to members that have an IRA. Clearly, this may not apply to all members, but it is something to consider because it could result in savings at tax time. Amounts distributed as a QCD can be counted toward satisfying your RMD for the year, up to $100,000. The QCD is excluded from your taxable income. If you are 72 or older, own an IRA, and donate to charity, QCDs may make sense for you; of course, members should always consult a tax advisor regarding their specific situation.
I intend to look into this and thought that it might be of interest to other members. I am attaching a link to a Fidelity page which describes the QCD. To be clear, I’m not plugging Fidelity, but it is where I have my IRA. Members should consult their own investment advisor regarding their personal situation.