
If you have investments in tax-deferred retirement accounts, such as traditional IRAs and employer-sponsored retirement plans, you may be required to take annual required minimum distributions (RMDs) once you reach age 73 (or age 75 if born after 1960). These RMDs begin as a relatively small percentage of your retirement assets but increase over time as you age, potentially creating a higher tax burden and possibly even pushing you into a higher income tax bracket or affecting your eligibility for certain tax benefits.
For owners of eligible IRAs, qualified charitable distributions (QCDs) may provide a way to satisfy some or all of those RMD obligations while excluding the distribution from taxable income.
QCDs can be a very effective charitable giving strategy, but they require skilled consideration. Please reach out to us, and we can coordinate with your other advisors, including your accountant and tax attorney, to determine if making a QCD is the right strategy for you.
Click here to read our article: Understanding Qualified Charitable Distributions
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