Qualified Charitable Distributions – What Are They and When Are They a Good Idea?
A qualified charitable distribution (QCD) is a direct transfer of funds from your IRA custodian, payable to a qualified charity. QCDs can be counted toward satisfying required minimum distributions (RMDs) for taxpayers over age 70 1/2. While QCDs offer tax benefits, they can also result in additional taxes in some situations. This article provides three examples to help illustrate when qualified charitable distribution might be preferable to receiving an RMD and donating a like amount to charity.
