Qualified Charitable Donations From an IRA

Qualified Charitable Donation (QCD) –Normally distributions from a traditional individual retirement arrangement (IRA) are taxable when received. With a QCD however, these distributions become tax-free as long as they are donated directly from your IRA to WoodsEdge. To qualify for a QCD, donors must be 70 ½ or older and they can exclude up to $100,000 from gross income through QCDs. For a married couple, if both spouses are age 70 ½ or over and both have IRAs, each spouse can exclude up to $100,000 each for a total of $200,000 per year. As an additional incentive, QCDs count toward the IRA owner’s required minimum distribution (RMD) for the year.  This is an exceptional way to support WoodsEdge and reduce your taxable income.


IMPORTANT:  QCDs are not deductible as a charitable contributions and because the donor is not taxed for a QCD distribution from their IRA,  the IRS requires that donors must get a written acknowledgement of their contribution.  We request that if you are going to make QCDs to WoodsEdge, please notify us so that we can insure the correct tax treatment of your donation and issue you a receipt. Because it isn’t always obvious to us that a donation is coming from and IRA, please make sure all donations are notated that they are a QCD in the memo of the check or if your brokerage firm is cutting the check on your behalf please make sure that they notate that the donation is a QCD on the check, check stub or an accompanying letter.

Please consult with a tax advisor to ensure your individual financial strategy works best for you. Should you have any questions about charitable giving, please contact us at  .