Seniors can reduce their tax burden by donating to charity through their IRA
LSC | LongSchaefer CPA/PFS
Cultivate Smart Money | Live On Your Terms - Accounting, Tax Strategy, Financial Planning & Consulting
In most cases, distributions from a traditional Individual Retirement Account are taxable in the year the account owner receives them but there are?some exceptions. A qualified charitable distribution is one of the few exceptions.
A QCD is a nontaxable distribution made directly by the trustee of an IRA to?organizations that are eligible?to receive tax-deductible contributions. QCDs can’t occur from Simplified Employee Pension plans and Savings Incentive Match Plan for Employees IRA.
Making a QCD can benefit the taxpayer by reducing their taxable income while they support qualifying charitable organizations of their choice. The taxpayer doesn’t have to worry about meeting the?standard deduction?or?itemizing deductions?with a QCD.