70 1/2: QCDs

Turning 70 1/2 unlocks a new financial opportunity: Qualified Charitable Distributions, or QCDs.

Normally, when you take money out of your IRA, that withdrawal is considered taxable income. But with a QCD, you can donate funds directly from your IRA to a qualifying charity, up to $100,000 per year, and that distribution becomes tax free. Even better, if you’re married, each spouse can donate up to $100,000 from your separate IRAs.

QCDs get extra cool when you reach Required Minimum Distribution age, but don’t worry about that for now, we’ll cover that in a few years.

So if you’re already planning charitable giving, or want to see how a QCD could fit into your financial plan this year, reach out to us. We’ll help you strategize.