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Qualified Charitable Distribution

Maximize your Required Minimum Distribution through a QCD

In 2018 the new tax law went into effect and it may be less likely that you will be able to itemize. Some estimates say between 5-10 percent of those filing.  Therefore, the previous income deduction for contributions to charities will be lost for many people. (

While that’s not necessarily a bad thing, it just means that instead of itemizing, many couples will opt for the new standard deduction.  For married couples over age 65 that will be $26,500 ($24,000 plus $2,600 over age 65 if filing jointly.)

Start planning for QCD’s Today

A Qualified Charitable Distribution (QCD) has been around for a few years but might offer even more benefits in 2020.  A QCD allows you to leverage the IRA distribution per spouse of up to $100,000 a year. (

This allows IRA owners over age 70 ½ to continue to give money to charities directly from their IRA’s in a tax-advantaged manner.  By following this tax strategy there are two advantages. First, a QCD counts towards the individual’s required minimum distribution.  Second, the distribution is excluded from the taxpayer’s income. It is this second benefit that really shines under the new tax law. (

As you see, there is a good reason to utilize a QCD, especially if you take the standard deduction in 2018 and are required to receive RMD’s.

Work with a Professional

Give us a call so that we might explore how this tax benefit might work for you.

For a comprehensive review of your personal situation, always consult with a tax or legal advisor.  Neither Cetera Advisor Networks LLC nor any of its representatives may give legal or tax advice.