Make an ADL Impact NOW: Qualified Charitable Distributions from Your IRA 

Why wait until the end of the year when you can start making a difference today? It is the perfect time to consider maximizing your giving while benefiting from potential tax advantages. If you are 70½ or older, you have the unique opportunity to make a Qualified Charitable Distribution (QCD) from your Individual Retirement Account (IRA) at any time throughout the year.  

What is a Qualified Charitable Distribution (QCD)? 

A QCD allows individuals aged 70½ or older to transfer funds directly from their IRA to a qualified charitable organization. By doing this, the amount transferred counts toward your required minimum distribution (RMD) but is excluded from your taxable income. This makes QCDs an efficient way to support causes you care about while potentially lowering your tax bill. 

Benefits of Making a QCD Now 

1. Immediate Impact: When you give early in the year, you provide nonprofits with vital resources they need to fund programs and services. Your generosity can start making a difference right away. 

1. Tax Efficiency: Because QCDs reduce your taxable income, they can lower your overall tax liability. This can be particularly advantageous if you do not itemize deductions. 

1. Simplify Your Year-End: Many people scramble at the end of the year to make charitable contributions. By giving now, you avoid the year-end rush and can better plan your finances. 

1. Meet Your RMD Requirements: If you are 73 or older (per SECURE Act 2.0), QCDs count toward your RMD. By handling this early in the year, you ensure you meet your RMD obligations without a last-minute crunch. 

How to Make a Qualified Charitable Distribution 

• Contact Your IRA Custodian: Inform them you want to make a QCD and specify the nonprofit organization as the recipient. 

• Ensure Direct Transfer: For a QCD to qualify, the funds must be transferred directly from your IRA to the charity. 

• Inform ADL or other charities that the distribution is coming, so staff is on the lookout and can provide adequate acknowledgement.