{"id":6534,"date":"2024-04-08T12:46:28","date_gmt":"2024-04-08T18:46:28","guid":{"rendered":"https:\/\/pasopacifico.org\/?p=6534"},"modified":"2024-04-14T12:15:27","modified_gmt":"2024-04-14T18:15:27","slug":"qcds-pay-less-taxes-and-help-the-planet","status":"publish","type":"post","link":"https:\/\/pasopacifico.org\/qcds-pay-less-taxes-and-help-the-planet\/","title":{"rendered":"QCDs: Pay Less Taxes. Help the Planet"},"content":{"rendered":"\n

Are you a retired individual<\/a> with a tax-deferred Individual Retirement Account (IRA)<\/strong>?\u00a0<\/p>\n\n\n\n

Once you reach a certain age, you\u2019re required to start withdrawing money from your IRA. The additional income you receive can push you into a higher tax bracket, which means you\u2019ll have to pay more taxes. This can have a significant impact on your net income. <\/p>\n\n\n\n

Because of this, many retirees opt to donate the money (all or part of it) to their chosen institutions. Known as the qualified charitable distribution (QCD)<\/strong> rule, this requirement enables them to deduct certain amounts from their annual taxable income.\u00a0<\/p>\n\n\n\n

The result is a win-win because their withdrawals don\u2019t get taxed, they can remain in the same tax bracket, and they get to choose which causes to support.<\/p>\n\n\n\n

If you\u2019re interested in enacting the QCD rule to help nonprofits like Paso Pacifico<\/a>, join us as we tell you all you need to know.<\/p>\n\n\n\n

What Are QCDs?<\/h2>\n\n\n\n

A qualified charitable distribution is a tax-free withdrawal from a traditional IRA that is donated to one or more qualified charities. <\/p>\n\n\n\n

Also called IRA charitable rollovers or IRA charitable distributions, it enables individuals who are 70 1\u20442 years old and above to donate their withdrawals without being taxed. <\/p>\n\n\n\n

The amount withdrawn is known as the required minimum distribution (RMD)<\/strong>. As of 2024, qualified individuals can give up to $105,000 annually from their RMDs as tax-exempt donations.<\/p>\n\n\n\n

How Do QCDs Work?<\/h2>\n\n\n\n

If a person wants to fulfill their required minimum distributions through QCDs, they must have one of the following IRA types (which are not employer-sponsored):<\/p>\n\n\n\n