April 19, 2024

In today’s edition of tax talk we are going to discuss Qualified Charitable Distributions.

If you’re 70 ½ or older and have a traditional IRA account, you might want to explore the option
of making a Qualified Charitable Distribution (QCD). With the ongoing increase in standard
deductions, many taxpayers find themselves unable to itemize deductions, rendering their
charitable contributions non-deductible. QCDs offer a solution by allowing you to do a direct
transfer from your IRA to a Qualified Charity, with limits set at $105,000 ($210,000 for married
couples filing jointly) in 2024. Not only does this reduce the taxable amount of your IRA
distribution, but if you itemize deductions, there could be additional benefits related to deduction
phaseouts based on AGI. Moreover, QCDs also fulfill your required minimum distributions.

Please contact your tax partner/manager to see if the use of QCDs could benefit you.

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