Did you know…
Qualified Charitable Distribution (QCD)
For those 70-1/2 and older…
For 2024 you can give up to $105,000 per year (indexed to inflation) 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 (QCD) – 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 do not itemize your deductions.
Required Minimum Distributions (RMD)
For those 73 and older…
If you must take a Required Minimum Distribution from your 401K or IRA, you may allocate some or all of the RMD (up to $105,000) to a QCD as noted above. You pay no federal income taxes on funds transferred to UUCS through a QCD and it meets the requirements of the RMD.
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!