Additional Thoughts About QCDs

In order to understand why QCDs might be a reality in most older IRA owners’ lives, consider this simple premise: Do you want to donate to charity? Do you have an IRA in RMD phase?

Column distributed by Hearst Connecticut Media Group.

Links to resources referenced:

• AARP 1040 Tax Calculator
  • https://www.aarp.org/money/taxes/1040-tax-calculator/?cmp=EMC-MIV-ACQ-imp-link-pros-ctrl-a-join-2024&gad_source=1&gclid=EAIaIQobChMI48jFgZKeigMVJVBHAR1dYwkrEAAYASAAEgKiKPD_BwE&gclsrc=aw.dsAt&irgwc=1&s3=VG10%3AeTFyxyKT1ZSfmUXcQViUkCV7kUxRxpvzA0&lgt=true&pubval=imp  
  • Related column excerpt:
    • “If you want to do the numbers, try the AARP tax calculator.”
• IRS website: IRA FAQs – Distributions (withdrawals)
  • https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-distributions-withdrawals
  • Related column excerpts:  
    • “These are the general rules that must be followed to avoid being taxed on the IRA withdrawal, and you can find them online on the IRS website.” 
• Internal Revenue Service, Treasury, 1.402(c)-2
  • https://www.govinfo.gov/content/pkg/CFR-2014-title26-vol5/pdf/CFR-2014-title26-vol5-sec1-402c-2.pdf  
  • Related column excerpts:
    • “There’s one other rule you should be aware of -- the ‘first dollar rule,’ which is found in Treasury Regulation 1.402(c)-2, Q&A-7 (tinyurl.com/me4hw2ep).
• UCF IRA Charitable Rollover
  • https://ucf.giftlegacy.com/?pageID=158  
  • Related column excerpts:
    • “The definition of a “charity” goes beyond more well-known names like the American Red Cross and the Salvation Army. For example, a college like the University of Central Florida provides information on its website for how to do a charitable distribution from an IRA, including a Letter of Intention form and the ability to search IRA custodians to request such a transfer.”
• The University of Kansas Health System
  • https://plannedgiving.kansashealthsystem.com/give-from-your-ira
  • Related column excerpts:
    • “Another example, this time from the field of health care: The University of Kansas Health System, a nonprofit, academic medical center, which provides information on how to donate using a QCD.”    
• NP Source, “The Ultimate List of Charitable Giving Statistics For 2024”
  • https://nonprofitssource.com/online-giving-statistics/
  • Related column excerpts:
    • “If you are considering one for this year (30% of annual charitable giving occurs in December, according to the website Nonprofits Source), be sure to take action as soon as possible so your gift will be processed by your IRA custodian before year-end.