Qualified Charitable Distributions

QDC

About Qualified Charitable Distributions

A Qualified Charitable Distribution (or QCD) is when individuals take distributions from their IRAs, and it usually counts as income for tax purposes. QCDs, also called IRA Charitable Rollovers, is an exception. Individuals 70 ½ years of age or older can distribute up to $100,000 each year from their IRAs to their favorite 501(c)(3) organizations without counting the distribution as income. 

Making a QCD gift is easy with our online tool. Click below to get started. If you have any questions or concerns, don’t hesitate to reach out to Simon Hunt at shunt@cityteam.org

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Are qualified charitable distributions for you?

Making a Qualified Charitable Distribution (QCD) can be a great option to lower your income taxes while doing good for others. If you’re subject to a Required Minimum Distributions, QCDs count toward your Required Minimum Distribution, effectively lower your adjusted gross income and often bring about many tax benefits.

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Required Minimum Distribution

The Required Minimum Distribution (RMD) is the smallest amount individuals must distribute from their IRA each year. As of January 1, 2023, the age to start taking RMDs increased from age 72 to age 73, with the exception of donors who turned 72 before January 1, 2023. This number will increase to age 75 in 2033. The penalty for missing an RMD is 25% of the amount that was supposed to have been distributed.

If you’re 70.5 or older, but you don’t have an RMD yet, you can still make a QCD. Doing so can lower your adjusted gross income and effectively reduce your income taxes.

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_{CityTeam is a registered 501(c)3 EIN: 94-1501265 non-denominational, non-profit.}