Qualified Charitable Distributions and Related Tax Code

Qualified Charitable Distributions and Related Tax Code
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Anne Johnson
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Most retirement funds mandate a required minimum distribution (RMD) once you turn 73. If the account owner doesn’t take the RMD, they are subject to a penalty. An RMD can put an individual in a higher tax bracket and affect Social Security and Medicare benefits.

But there is a way to lower the tax liability through a qualified charitable distribution (QCD). But what exactly is a QCD, and how do they work?

Repercussions of an RMD

It’s essential to first understand the consequences of an RMD on you. It increases your taxable income. But it can also have other repercussions.
Anne Johnson
Anne Johnson
Author
Anne Johnson was a commercial property & casualty insurance agent for nine years. She was also licensed in health and life insurance. Anne went on to own an advertising agency where she worked with businesses. She has been writing about personal finance for ten years.
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