What is a Qualified Charitable Distribution (QCD)?
A withdrawal made directly to an eligible charity nonprofit from an individual retirement arrangement account (IRA) is a qualified charitable distribution (QCD). An IRA account holder who is at least age 70 1/2 can contribute some or all their IRAs to charity.
What are the Required Minimum Distributions?
Anyone aged 72 or 70 ½ before December 31 is required to withdraw from their IRA even if they do not need the money. Please keep in mind, even if you do not need your required minimum distribution you can use your requirem minimum distribution to make a donation to YAMM.
Taxes and Qualified Charitable Distribution
All IRA accounts are subject at a 50% excise tax. To avoid the 50% IRA withdrawal tax, an IRA account holder can take the required minimum distribution and use it as a Qualified Charitable Distribution. Don't get penalized for not taking your required minimum distribution on your IRA, make a doantion with it to YAMM.
YAMM is an eligible charity that IRA account holders can directly transfer qualified charitable distributions to from an IRA account.
The maximum amount of donations is up to $100,000 per IRA account holder example $200,000 for married couples if each holds an IRA account. Qualified Charitable Distribution “QCD” lowers your adjusted gross income on your tax return as a zero “QCD.” Which means fewer or no taxes you pay! This allows the account holder to save and be able to claim other tax credits. Qualified Charitable Distribution (QCD) cannot be considered income on your tax return.
IRA account holders cannot use Qualified Charitable Distribution (QCD) as an itemized deduction, however, will benefit more greatly from the way the Qualified Charitable Distribution is designed for the account holders is not to pay taxes of 50% on the withdrawal of the required minimum distribution.
Your Qualified Charitable Distribution will benefit YAMM youth and our programs when you instruct your Qualified Charitable Distribution directly to YAMM. Receive your tax savings, benefit, and support by directing your Qualified Charitable Distribution to YAMM today.
How to Direct Your Qualified Charitable Distribution, the Required Minimum Distribution to YAMM
If you are 70 1/2 or older, you can make Qualified Charitable Distributions of up to $100,000 from your IRA every year.
Contact your current IRA holding company for more details on how to make a donation through your Qualified Charitable Distribution and set up your QCD to come to YAMM to help support our mission.