Qualified Charitable Distributions: Win-Win-Win!

Thanks to the Tax Cuts and Jobs Act of 2017, fewer people itemize expenses on their taxes due to the higher standard deduction amounts. For many, giving to their church or favorite charity doesn’t offer added tax benefits. For those over 70 ½ though, a QCD from an Individual Retirement Account can be a win-win-win!

Many IRAs allow for Qualified Charitable Distributions, a tax-free withdrawal (win!) whereby the check is made directly payable to a qualified 501c3 charity, who in turn receives the money tax-free (win!) due to their charitable status. Additionally, the IRA owner may count the distribution toward their Required Minimum Distribution (win!) in the year the distribution is made. The check may be sent to the IRA owner to present to the charity, but must be made payable to the organization. There is no minimum for QCD’s, but there is a maximum annual amount of $100,000 per person. QCDs can be made to multiple charities each year and can even be scheduled at the IRA owner’s request. For your giving, consider Qualified Charitable Distributions, a win-win-win! 

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.

The information provided here is for general information only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone.

LouAnn Schulfer of Schulfer & Associates, LLC Wealth Management can be reached at (715) 343-9600 or louann.schulfer@lpl.com TheWealthInformationLady.com or  SchulferAndAssociates.com

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Securities and advisory services offered through LPL Financial, a Registered Investment Advisor.  Member FINRA/SIPC.