Why charitable individual retirement account transfers should be the 'first source of giving' for certain retirees
Reminder that end of year is the deadline for sending out QCDs (Qualified Charitable Distributions) from your Traditional IRA. As it likely requires a paper or electronic form, you won't want to wait too much longer or risk processing delays.
QCDs allow you to transfer dollars from your pre-tax Traditional IRA directly to the charity or charities of your choosing, in a non-taxable event. Thus, even if you don't itemize, you can gift this way and take dollars out of your taxable IRA without paying any taxes.
Note, you must be 70.5 to do QCDs, and you must be 72 or older to have them count towards your RMD (Required Minimum Distribution). You can gift up to a maximum of $100,000 per year in this way, and these gifts are irrevocable.
If all of these terms and rules leave you feeling confused, reach out to your financial advisor.
*Legal Disclaimer: Thrivent and its financial professionals do not provide legal, accounting, or tax advice, Consult your attorney or tax professional.
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