QUALIFIED CHARITABLE DISTRIBUTION (QCD)

Individuals who own a IRA or a Rollover IRA have the ability to do a QCD after age 70 1/2 directly to a 501c3 non profit organization.

This contribution made directly is not considered taxable income for the individual.

At age 73, every owner of a IRA or a Rollover IRA is required to start taking withdrawal from the account. This is called REQUIRED MINIMUM DISTRIBUTION (RMD).

In most cases the amount of withdrawal must start at 3.77% of the year end value of the account from the previous year. This is treated as taxable income for the account owner.

People who do not need these withdrawals, can consider doing a QCD to a 501c3 organization using part or all of their RMD.