Thinking About Giving from Your IRA? What to Know About Qualified Charitable Distributions (QCDs)

A 60-second read by James Suazo, ChFC®: If you’re age 70½ or older and give to charity, a Qualified Charitable Distribution (QCD) from your Individual Retirement Account (IRA) may be worth considering.  

A QCD allows you to make a charitable gift directly from your IRA to a qualified charity. It’s a way to support charities while also reducing taxable income created by your IRA distribution. For Baron clients, we can help determine if this is beneficial for you. 

Is a QCD right for me? The rules surrounding QCDs can be confusing. That’s why we’ve created a simple flowchart to help you navigate some of the common issues and key considerations, including:

• Age requirements
• Distribution limits
• Qualified charitable organizations
• The effect of account distributions
• Step-by-step reporting process

Considering a QCD from an IRA? Start with this guide:
Click on the image to see a larger version.

Have questions?

As always, it’s best to discuss your options with your personal financial advisor
and/or tax professional, who understands your specific circumstances. 

If you’re considering a QCD, or if you have questions and would like to
discuss your options, please contact the Baron Financial Group Team.

Visit our blog for more information about IRAs.
Learn more about how we can help with your retirement planning.

Disclosure: This is a general communication being provided for informational purposes. This material is not intended to be relied upon as forecast, research, tax or investment advice. Past performance is no guarantee of future results. Every investment strategy has the potential for profit and loss. Please consult your financial planning and tax professional for personal advice.