QCDs

Are you 70 and 1/2 this year? Do you give to qualified charitable organizations?

Do you have a pre-tax Traditional IRA?

If so, please be sure to make your IRS qualified charitable distributions directly from your IRA to the charities of your choice.

QCDs are Qualified Charitable Distributions that are not taxed up to IRS limits (which are indexed to inflation but up to an amount now over $100,000). What a great way to get money out of your pre-tax Traditional IRA and not pay taxes.

These QCDs are included as part of your RMDs (Required Minimum Distributions) when those begin at age 73 or higher age depending on when you were born.

The 1099-R at year-end should be coded with a "Y" denoting that it is a tax-free distribution; however, I have not found providers doing this consistently so keep your own good records of your Qualified Charitable Distributions.