If you're fortunate enough to be 70 1/2 or older, you can use your IRAs to maximize your charitable giving impact. A QCD is a nontaxable distribution made directly by the administrator of your IRA to a qualified public charity. The benefits of a QCD include:
- A QCD from a traditional IRA uses pre-tax dollars.
- Generally, a QCD is excluded from taxable income. (Please consult your tax advisor for more information.)
- A QCD can be applied to required minimum distributions, if applicable.
Basic Requirements & limitations for a QCD include:
- Donor must be at least 70-1/2 years of age at the time of distribution.
- Distribution must be from a Roth or Traditional IRA.
- Distribution must be made directly from the IRA administrator to DSPC (or another qualifying charity).
- QCDs are limited to $100,000 per individual per year (a spouse who qualifies may give a similar amount from their IRA.)
Contact DSPC's Treasurer, Robin Robinson at 512-954-8074 or R3Robinson@icloud.com with any questions or if you need help.