Taxpayers 70.5 years and older are required to take annual distributions from an IRA which are ultimately subject to taxation. But there’s a way to save on your taxes while supporting our community. A Qualified Charitable Distribution is a transfer of funds from your IRA payable directly to a charity. Amounts distributed can be counted toward satisfying your annual Required Minimum Distribution. The Qualified Charitable Distribution is excluded from your taxable income. This isn’t the case with a regular withdrawal from your IRA, even if you use that money to make a charitable donation later.
Be sure to contact your local financial planner, accountant or attorney to discuss your specific situation before making a donation.