This article is ONLY for those of us over 70 1⁄2 years old and have one or more Individual Retirement Arrangements (IRA’s). If this describes you, and you make donations to Aldersgate (or any other charitable organization), you might want to consider making your contributions by way of a Qualified Charitable Distribution (QCD) instead of your checkbook.
What is a Qualified Charitable Distribution?
Generally, a qualified charitable distribution is an otherwise taxable distribution from an IRA that is paid directly from the IRA to a qualified charity. A QCD is generally not subject to income tax.
Can a Qualified Charitable Distribution satisfy my required minimum distribution (RMD) from an IRA?
YES, your qualified charitable distributions can satisfy all or part of your required minimum distribution from your IRA. For example, if your required minimum distribution was $10,000 for a given year, and you made a $10,000 qualified charitable distribution for that year, you would have fulfilled your RMD. AND THE $10,000 WITHDRAWN IS NOT TAXABLE! (If your MRD was $20,000 and you made the same $10,000 charitable distribution you would owe tax ONLY on the remaining $10,000.
For more information, contact Endowment Chair Ed Yohn at (717) 487-2107 or [email protected]