Did you know…
For those 72 and older…
You can give up to $100,000 per year from your IRA to a qualified charity – such as UUCS – without having to pay federal income taxes on the money. This type of donation – known as a Qualified Charitable Distribution or QCD – can be counted towards satisfying your annual Required Minimum Distribution (RMD) for those who are subject to RMDs. The benefit to you is that as long as the funds go directly from your IRA to UUCS you will pay no federal income taxes.
This last sentence is key: the distribution must be made directly to UUCS. If the distribution check is made payable to you it will not qualify as a QCD and will count as taxable income to you. As long as it is done correctly, this type of QCD generates neither taxable income nor a tax deduction so you benefit even if you don’t itemize your deductions.
As tax information is complex and tax laws change over time please consult your financial advisor about how a QCD might work with your personal financial situation.
If you have general questions, UUCS member Alyssa Lum has generously offered her time and expertise. Thank you, Alyssa!