Year-End Tax Planning Series: Qualified Charitable Distributions

Starting with the Pension Protection Act of 2006, taxpayers age 70½ or older were allowed a qualified charitable distribution (QCD), which allows you to direct your IRA trustee to make a distribution, up to $100,000, directly from your IRA to a qualified charity. This QCD fulfills the required minimum distribution for the year. The distribution must be one that would otherwise be taxable to you.
The law was extended through 2009 by the Emergency Economic Stabilization Act of 2008, and has just been extended again, through 2011, by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the Tax Relief Act).
You do not get to deduct QCDs as a charitable contribution on your federal income tax return, but you do not have to claim the distribution as income either.

Category:

News & Politics

Tags:

• HensslerGroup
• Henssler Financial
• Mike Quinlan
• Ben Crowe
• Chartered Financial Analyst
• CPA
• Year-End Tax Planning
• IRA
• Charity
• Finance
• income tax