When planning your Individual Retirement Account (IRA) withdrawal strategy, you might wish to consider making it a donation through a Qualified Charitable Distribution (QCD).
Traditional IRAs require you to take a minimum distribution once you reach age 72. Because you did not pay federal income taxes when you contributed the money to your account, you need to pay taxes when you withdraw it. However, after age 70Ā½ you can avoid the added tax by donating your distribution to a charity! Also called a qualifying charitable distribution (QCD).
This means that rather than paying taxes on the money, it goes directly to support the mission of Harding Fine Arts Academy Foundation. You donāt need to be rich to do this, and it can be an effective tax strategy for many.
Making a QCD may help you:
First, contact your IRA administrator and see if they have a form that you can use to make an IRA direct charitable gift request. If that is not available, follow these three easy steps . . .
The preceding outline is provided for informational purposes only and is not intended as financial, tax or legal advice.Ā Individuals will want to discuss this with their own professional advisers and IRA administrators.
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