what is a qualified charitable distribution?

A Qualified Distribution enables individuals aged 70½ or older to contribute a total of up to $108,000 to one or more charitable organizations directly from a taxable IRA, bypassing the need to take their required minimum distributions.

Consequently, donors can steer clear of being elevated into higher income tax brackets and can also avert the reduction of other tax deductions, although certain limitations do exist.

QCDs do not count against the maximum deductible amounts for individuals who itemize their charitable contributions on their tax returns, meaning the $108,000 can be above & beyond those limits. This allows donors to make larger charitable gifts than they might be able to if they were to donate cash or other assets alone.

You may also be eligible to avoid IRMAA (Income Related Monthly Adjustment Amount - an amount you pay on top of your Medicare Part B & Part D) by donating to a 501(c)(3) organization. 

We encourage you to speak to your tax professional on whether a Qualified Distribution is right for you and if so, we would love to be one of the charitable organizations you support! 

Red Collar Rescue & Recovery

Organization 501(c)(3) Rescue

EIN #: 33-2938264