A Qualified Charitable Distribution (QCD) allows individuals aged 70½ or older to donate up to $108,000 annually from their traditional IRA directly to a qualified charity, potentially avoiding income tax on the distribution. This strategy is particularly useful for those who need to take Required Minimum Distributions (RMDs) but don’t need the funds for living expenses. 

Key Rules for QCDs:

• Age: You must be at least 70½ years old at the time of the distribution. 
• IRA Type: QCDs can be made from traditional IRAs, inherited IRAs, and sometimes simplified employee pension (SEP) or savings incentive match plan for employees (SIMPLE) IRAs. 
• Direct Transfer: Funds must go directly from the IRA custodian to the qualified charity, not to you first.  Request your IRA custodian to send your donation directly to Beulah Church. 
• Eligible Charities: The charity must be a 501(c)(3) organization that is qualified to receive tax-deductible contributions.  Beulah Church is an eligible charity. 
• Annual Limit: The maximum QCD amount is $108,000 per individual per year, indexed for inflation starting in 2024. For married couples filing jointly, each spouse can make a QCD, potentially totaling $216,000. 
• Timing: The QCD must be completed by December 31st of the tax year. 
• RMDs: QCDs can satisfy all or part of your RMD for the year. 
• No Itemized Deduction: Unlike traditional charitable donations, QCDs are not deductible as itemized deductions. 
• Tax Implications: QCDs are excluded from your taxable income, potentially lowering your overall tax liability. 
• Record Keeping: It’s crucial to keep records of your QCDs for tax purposes.