Qualified charitable distributions (QCDs)

Did you know you can choose to give up to $111,000 to a qualified charity from your IRA (other than an ongoing SEP or SIMPLE IRA) without counting it as taxable income when you are over 70½ years old? This type of gift is called a qualified charitable distribution (QCD).

A QCD will count towards your required minimum distribution (RMD). However, you can’t claim a charitable contribution deduction for any QCD not included in your income.

Our financial advisors can help you calculate how much you may want to rollover to a Traditional IRA that will generate a QCD equal to the amount you intend to gift each year. You will still have an RMD from your 403(b), because 403(b) plans are ineligible to deliver QCDs.

P.S. Would you consider using all or part of your QCD to give to WEA Member Benefits Foundation to support student mental health in our Wisconsin public schools? The Foundation’s statewide initiative focuses on enhancing access to mental health services within schools and expanding partnerships with local philanthropic funders and community mental health agencies.