New York Estate Planning & Elder Law Blog
Charitable contributions and gifts make up a large aspect of many estates. As with everything, there is a right way to give and a wrong way to give. Planning can help ensure that your gift is properly funded and distributed according to your wishes. This planning may include using qualified funds while you are living.
The 411 on QCDs
Individuals age 70 ½ or older are allowed under IRS rules to make direct charitable gifts from an IRA of up to $100,000 to public charities. These gifts are called qualified charitable distributions (QCDs) and are not required to report this distribution as taxable income on their federal income tax return. Historically, this tax break was voted upon and approved on an annual basis; as of 2015, it has been permanent.