If you’re over the age of 70 ½, a qualified charitable distribution may be right for you.
If you have an IRA, recent legislation (the SECURE ACT, which went into effect on January 1, 2020) increased the age at which one must start taking required minimum distributions (RMDs) from 70 ½ to 72. Once you reach 72 (for 2020, this requirement was waived due to COVID-19 – see our planned giving pages and information on the CARES Act) one of the great benefits of a QCD is that it will count towards your RMD. However, even if you have not reached age 72, there are still good reasons to consider a QCD at 70 ½.
Benefits of a QCD
A QCD at 70 ½ reduces the balance in your IRA. It also offers all the benefits of an income tax charitable deduction, even if you don’t itemize your deductions. Although you can’t claim a deduction for your QCD, your QCD is not included in your income. At age 72 or older, your RMD is based on the balance in your IRA at the end of each year (waived in 2020) multiplied by a factor published by the IRS. You may be in a position where you don’t want, or need, the income from your IRA. A higher income can increase your Medicare premiums and create other tax issues. Consider making QCDs starting at 70 ½ to reduce the balance in your IRA. Your QCD is always a tax-free gift.
IMPORTANT NOTE: The law states that a qualified charity is a public charity, but not a supporting organization. Since Visiting Nurse Association & Hospice Foundation, Inc. is a public charity, but also a supporting organization, it does not qualify to be a beneficiary of a charitable IRA rollover gift. Please have your IRA Charitable Distribution made directly to Visiting Nurse Association of the Treasure Coast, Inc., EIN 59-2664912, a 501(c)3 non-profit organization, or have your IRA Administrator contact us for transfer information.