When you are age 70 1/2 or older, the best way to make charitable contributions usually is through qualified charitable distributions (QCD) from a traditional IRA. A QCD can satisfy your required minimum distribution (RMD) for the year and reduce your income taxes.
For example, say your RMD for the year is $17,000. Make at least $17,000 of QCD’s and you’ve satisfied both your RMD and $17,000 of your charitable giving for the year. The money is out of your traditional IRA, but there’s no gross income on your tax return.
Check with your financial advisor for additional details.
