Timing Is ‘Right Now’ for QCDs

If you have not yet taken your required minimum distributions from your IRAs for 2024 and are interested in donating to a charity, a QCD can save you tax dollars while benefitting charity.

Column distributed by Hearst Connecticut Media Group.

Links to resources referenced

• SOI Tax Stats - Accumulation and distribution of individual retirement arrangements (IRA)
  • https://www.irs.gov/statistics/soi-tax-stats-accumulation-and-distribution-of-individual-retirement-arrangements
  • Related column excerpt:
    • Millions  of IRA owners are 70 or older, according to IRS income tax statistics. That means millions are potential QCD candidates, but only if they are educated about QCDs.

• Search for tax exempt organizations

• • https://www.irs.gov/charities-non-profits/search-for-tax-exempt-organizations
  • Related column excerpt:
    • Qualified Charity: Use the IRS Tax Exempt Organization Search Tool at tinyurl.com/497um8xp to see if a charity qualifies.

• Sample QCD Programs

• • Harvard
    • https://alumni.harvard.edu/college/college-giving/gift-planning/ira-qualified-charitable-distribution 
• • The ALS Association 
    • https://www.als.org/get-involved/ways-give/qualified-charitable-distributions
• • St. Jude Children’s Research Hospital
    • https://www.stjude.org/give/planned-giving/qualified-charitable-distributions.html
• • Dana-Farber Cancer Institute
    • https://www.dana-farber.org/how-you-can-help/ways-to-give/tax-efficient-gifts/ira-gifts

• IRS Pub 590-B

• • Publication 590-B: Distributions from Individual Retirement Arrangements (IRAs) https://www.irs.gov/pub/irs-pdf/p590b.pdf
  • Related column excerpt:
    • Follow QCD rules: If you don’t, your “QCD” could fail. Be sure to engage your tax adviser and the charity of your choice that will receive your donation. For more information on QCDs, see IRS Publication 590-B.