An IRA rollover allows people age 70½ and older to reduce their taxable income by making a gift directly from their IRA.
moreAn IRA rollover allows people age 70½ and older to reduce their taxable income by making a gift directly from their IRA.
moreAn IRA rollover allows people age 70½ and older to reduce their taxable income by making a gift directly from their IRA.
moreEach year the Internal Revenue Service (IRS) reminds owners of traditional IRAs who are over 70½ that they may make a charitable gift from a traditional IRA. The IRS refers to an IRA charitable rollover gift as a qualified charitable distribution (QCD). An added benefit for those who are age 73 or older is that a QCD may fulfill part or all of your required minimum distribution (RMD) for the year.
It is helpful for owners of traditional IRAs to understand how to do a QCD, what is required to report a QCD on your tax return and the required information on your acknowledgment from the nonprofit.
Editor's Note: Many individuals will fulfill part or all their RMD this year through a gift to charity from a traditional IRA. It is best to start the gift process in November or early December. Some IRA custodians may take longer than expected to process the transfer. If a donor has the right to make distributions from his or her traditional IRA through a checkbook, it will be important to send the check directly to the charity. A donor must allow sufficient time for the charity to deposit the check and for the financial institution to process the check. This process must be completed by December 31, 2024 to qualify as an RMD for 2024.
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