If you are 70-1/2 years or older and have an Individual Retirement Account (IRA), you have a unique opportunity to offer a tax-free financial contribution to a charitable organization. This donation is called an IRA "Qualified Charitable Distribution" or "QCD."
We aren't qualified to provide official tax advice. For that, you should always consult an accounting professional. However, according to the IRS, the QCD transfer offers eligible older Americans a straightforward way to give to charity before the end of the year. And, for those who are at least 73 years old, QCDs count toward the IRA owner's required minimum distribution (RMD) for the year.
Normally, distributions from a traditional IRA are taxable when received. With a QCD, however, these distributions become tax-free as long as they're paid directly from the IRA to an eligible charitable organization. Also, the QCD must be made directly by the IRA trustee to the charitable organization.
To qualify for a QCD, the IRS states that the IRA owner must be age 70½ or over when the distribution is made. This means you can exclude up to $100,000 of these QCDs from gross income annually. For a married couple, if both spouses are age 70½ or over when the distributions are made and both have IRAs, each spouse can exclude up to $100,000 for a total of up to $200,000 per year.
Not all charities are eligible for this contribution. To qualify, a charity must be a 501(c)3 and eligible to receive tax-deductible contributions. This presents a unique giving opportunity for individuals to contribute to HOME International, Inc., a 501(c)3 organization.
To learn more, visit irs.gov. Contact Alisha Wambolt to offer a Qualified Charitable Distribution to HOME International, Inc. Your contribution will help extend a compassionate hand to women, children, and families facing adversity, fostering positive transformations in their lives and communities.
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