Are you 70 ½ or older and have an IRA? Have you considered the use of a Qualified Charitable Distribution (QCD) in your tax planning?
A QCD allows an IRA owner subject to Required Minimum Distribution (RMD) to donate up to $100,000 directly from an IRA to a qualified charity without getting taxed on the distribution. Another benefit of the RMD payment applied to the QCD is that the amount is excluded from tax formulas that could impact multiple categories such as Social Security taxation and Medicare Part B and Part D premiums. The QCD must be paid directly to the charity, which must be a qualified 501(c)(3) institution eligible to receive tax-deductible contributions, like many public charities. The eligible charity must receive the donations by December 31 in order to ensure credit to the proper year.
Since each individual’s situation is unique, it’s important to seek guidance to explore if this tax planning tool is right for you. Begin the process by discussing QCDs with your tax advisor. The professionals at TFCU Financial Advisors are also here to help you design an overall financial plan that includes your charitable giving goals. Call (405) 737-0006 today for an appointment at a Tinker Federal Credit Union branch near you.
TFCU Financial Advisors
6501 Tinker Diagonal, MWC
(405) 737-0006
TFCUFinancialAdvisors.org
Securities are offered through RAYMOND JAMES FINANCIAL SERVICES, INC., Member FINRA/SIPC, and are not insured by NCUA or insured by any other government agency. Funds are NOT GUARANTEED nor are they deposits or obligations of the credit union or any affiliated entity of the credit union, and are subject to risk, including the possible loss of principal. Tinker Federal Credit Union, Tinker Financial Services, LLC and TFCU Financial Advisors* are not registered broker/dealers and are independent of Raymond James Financial Services, Inc. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc., a nonaffiliated third party provider to Tinker Financial Services, LLC and Tinker Federal Credit Union. All investments and information are intended for U.S. residents only. *TFCU Financial Advisors is a registered trademark and ‘dba’ of Tinker Financial Services, LLC. Changes to tax laws or regulations may occur at any time and could substantially impact your situation. Raymond James financial advisors do not render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.