Did you know if you are at least 70 ½ years old, you can donate money from your IRA to charity? This donation will not only support Meals on Wheels of Boulder, but you as well!
Here are the basics:
- If you are at least 70 ½ years old, you are allowed to make a QCD. The maximum you can gift through a QCD for 2024 is $105,000.
- To make a QCD, the donation must be made directly from your IRA to the charity of your choice.
- If you would like to make a gift for 2024, contact your brokerage as soon as possible. You will want your distributions from your IRA to your charity(ies) to arrive before the December 31 deadline for the 2024 tax year.
Making a Qualified Charitable Distribution (QCD) can help you reduce your tax bills from traditional IRAs.
- A QCD from your IRA is not counted as taxable income. This will help lower your tax bill, and it can also impact other retirement expenses.
- A QCD reduces the remaining balance of the IRA. If you want or need to minimize your annual Required Minimum Distribution or RMD (when you reach RMD age), a smaller IRA balance will mean a smaller RMD.
- A QCD counts as an RMD. However, the amount of the QCD is not counted as taxable income. This lowers your required RMD taxable amount by the amount of the QCD.
If a QCD sounds like it could be a good way to donate to Meals on Wheels of Boulder, please consult your trusted tax professional. Thank you.
-Sourced from various financial information sites.