IRAs, RMDs, QCDs, Oh, my!
That’s a lot of letters to decipher, but they are important to know if you:
- hold an Individual Retirement Account (IRA) or 401(k);
- are at the age of Required Minimum Distributions (RMD) and
- are taking advantage of the Qualified Charitable Deduction (QCD).
Individuals who have reached the required age of minimum distributions have the option of directing up to $100,000 annually to causes they care about. It’s a win-win with charity receiving 100% of the distribution and the individual avoiding income tax on the distribution. The key is to make sure the funds go directly to a qualified charity and never hit your personal accounts.
The Winona Community Foundation is an eligible 501(c)(3) charity. Individuals who wish to donate using a QCD can give to any number of funds within the Foundation with one BIG exception. The Internal Revenue Code (IRC) does NOT allow individuals to use a QCD to contribute to or establish a personal donor advised fund.
If you want to learn more about how to use your IRA or other retirement assets to fulfill your charitable goals, please give us a call at 507.454.6511 or email [email protected] We are here to help.