IRA RMD QCD
I had a friend at my last job who had a sign on his desk that read:
“Stamp out TLA’s *”
* Three Letter Acronyms
The title of this post made me recall that sign. Except, these TLA’s are more serious.
The title decodes as: Individual Retirement Account Required Minimum Distribution Qualified Charitable Distribution. Still not a lot of help, is it?
If you have an IRA and as of 2019 you reached the age of 72 – prior to that is was 70-1/2 – you are required to withdraw a calculated minimum amount each year and that amount becomes Taxable Income which is added to any other taxable income you may have.
As you may know, when you donate money as a QCD directly to a charity, that money is TAX FREE. To qualify for a QCD, funds must be transferred directly from your IRA to the qualified charity. This is accomplished by instructing your custodian to issue a check from your IRA payable to the charity. You can specify a check be mailed to the charity or the distribution be transferred directly via an ACH money transfer.
AltoCEP is a 501(c)(3) Qualified Public Charity and is eligible to receive QCD’s.
Please consult your tax advisor or IRA custodian for detailed instructions.