IRA Donations
Donating from your IRA with a Qualified Charitable Donation
Did you know a great way to support causes you care about while managing your retirement funds efficiently is to donate directly from your IRA? If you're 70½ or older, you can donate up to $100,000 each year from your IRA directly to charities without paying taxes on the amount. These donations can also count towards your Required Minimum Distribution (RMD). To qualify, the funds must be transferred directly from your IRA to the charity by your IRA trustee.
These donations called QCDs offer significant tax savings. Normally, distributions from a traditional IRA are taxable, but QCDs are excluded from your taxable income. This can lower your overall tax burden, especially if you don't itemize deductions. This makes QCDs a smart and effective way to support your favorite charities while enjoying tax benefits. Talk to your tax advisor to see if this makes sense for you.
