top of page

Qualified Charitable Distributions

Qualified Charitable Distributions are a good way to lower taxes by making charitable contributions using your traditional IRA. By making a charitable donation to a qualified charity directly from your traditional IRA, you can avoid taxes on that distribution. Other advantages are that you do not need to itemize deductions on Schedule A with QCDs. QCDs count toward the Required Minimum Distribution amount for IRA owners aged 73 and older. 1


To make a QCD, you should work with your current IRA custodian, as each custodian may have a different process for issuing the QCD.


It is important to understand the rules and limits.


You cannot do a QCD until after the age of 70 1/2. 1


The maximum QCD is $108,000 per person. For married couples, each can exclude up to $108,000 if each spouse is over the age of 70 1/2 when the distributions are made, and both have IRAs. 1


The charity must be a qualified charity. A qualified charity is a 501(c)3 organization/charity. You can use the IRS Tax Exempt Organization Search Tool to ensure your charity qualifies.


As stated above, donations must come directly from your IRA custodian/trustee and be made payable to the charity.


Although QCDs are not deductible as charitable contributions, the donor must still get a written acknowledgment for their contribution from the charitable organization before filing their return. See IRS Publication 526, Charitable Contributions, for more details.


You will receive a 1099R from your IRA custodian/trustee when doing a QCD, but there is no code on the 1099R to let the IRS know you did a QCD. This makes it even more important to keep good records and correctly report the QCD on your tax return. See IRS Publication 590-B, Distributions from Individual Retirement Arrangements.


I recommend, if possible, that clients do not wait until the end of the year to do a QCDs. Doing QCDs by October or early November allows time to get the acknowledgment from the charity and addresses any issues like a lost check.


Interested in learning more? Go to the Let’s Connect section and complete the form to be contacted for a free consultation.


1 Source Publication 590


Investment advice offered through Stratos Wealth Advisors, LLC, a registered investment advisor. Stratos Wealth Advisors and Synergy Wealth Management are separate entities.


The information in this material is not intended as tax or legal advice. Synergy Wealth Management does not provide tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.

Subscribe and get my blog articles sent to your email address • Don’t miss out!

Comments


Synergy White Logo - Ronald Taraborrelli

10,000 Lincoln Drive East, Suite 201
Marlton, NJ, 08053

Phone: (856) 562-8800

STRATOS FORM CRS

​​​Privacy Policy

Accessibility Statement

​​

Investment advice offered through Stratos Wealth Advisors, LLC, a registered investment advisor. Stratos Wealth Advisors, LLC and Synergy Wealth Management are separate entities.

 

The Synergy Wealth Management site is limited to the dissemination of general information pertaining to its services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Synergy Wealth Management web site on the Internet should not be construed by any consumer and/or prospective client as a solicitation by Synergy Wealth Management to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

 

The Synergy Wealth Management's website and its associated links offer news, commentary, and generalized research, and should not be construed as personalized investment advice.
Past performance is not necessarily indicative of future results and there is no assurance that the investment objective will be achieved or that the strategies employed will be successful. All investments involve risk including loss of principal and unless otherwise stated, are not guaranteed.


The contents of the Site may contain forward-looking statements that are based on The Synergy Wealth Management’s beliefs, assumptions, current expectations, estimates, and projections about the financial industry, the economy. Statements and views are subject to change without notice. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. Therefore, actual results and outcomes may materially differ from what may be expressed or forecasted in such forward-looking statements.

 

Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended Stratos), will be profitable or equal any historical performance level(s). Due to various factors, including changing market conditions, such discussion may no longer be reflective of current position(s) and/or recommendation(s). If you have any questions regarding the information on this website, please consult with your financial advisor.  No strategy assures success or protects against loss.

Fidelity Investments® (“Fidelity”) is an independent company, unaffiliated with your advisor. There is no form of legal partnership, agency affiliation, or similar relationship between your financial advisor and Fidelity, nor is such a relationship created or implied by the information herein. Fidelity has not been involved with the preparation of the content supplied by your advisor and does not guarantee, or assume any responsibility for, its content. Fidelity Investments is a registered trademark of FMR LLC. Fidelity provides clearing, custody, or other brokerage services through National Financial Services LLC or Fidelity Brokerage Services LLC, Members NYSE, SIPC. 1171392.1.0

​​

bottom of page