Insights into Current Industry
Trends and News

Here’s How a a Qualified Charitable Distribution (QCD) can Offset Your RMD

If you are 72 or older by year end, do not forget to distribute your Required Minimum Distribution (RMD) from your IRA for 2022 prior to year-end. If you are concerned your income may be higher than planned and do not need the RMD for cashflow, consider making a Qualified Charitable Distribution.

A Qualified Charitable Distribution is a distribution from an IRA owned by an individual who is age 72 or over that is paid directly from the IRA to a qualified charity. Without the charitable gift, the RMD would be ordinary income; however, by distributing the money to a qualified charity you will directly reduce the taxable portion for the RMD while satisfying the distribution requirement.