3 Common Questions about IRA Qualified Charitable Distributions

We receive several inquiries regarding Qualified Charitable Distributions (QCDs), so we were happy to find Ascensus' article discussing some common questions about QCDs. 

What is a QCD? A nontaxable distribution from a Traditional or Roth IRA owned by a person aged 70.5 years or over and made payable directly to a charitable organization. The organization must be qualified under the IRC §170(b)(1)(A). 

Are there limits to the number of QCDs that I as the IRA owner can make annually?No, but any individual QCD over $100,000 would be includable (thus taxable) as income. You can make as many QCDs as you like, provided each is under that maximum annual exclusion. Spouses filing jointly each have a personal limit: Andrew and Lucas, for example, could each make donations up to the hundred thousand dollar limit.

Does the full amount of the QCD count as a charitable contribution for purposes of tax deduction? No. These are not considered to be charitable contribution for tax deduction purposes.

Ascensus has more information in the full article. Remember, don't be afraid to ask questions! Consult with your CPA or financial planner before you make any major financial decisions.

To learn more, visit Ascensus here: https://ow.ly/38VU30kzsBg

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