Congress has recently passed the Consolidated Appropriations Act of 2016 which will make qualified charitable distributions (QCDs) from individual retirement accounts permanent. With the changes being made with this new legislation now is a good time for estate planners to review the rules. QCDs allow for annual direct transfers to a qualified charitable organization that can provide a person with up to $100,000 of tax-deferred IRA savings. This article discusses many of the advantages that QCDs offer people as an alternative to taking direct taxable IRA distributions. There are certain requirements that a person must follow when making a QCD that are mentioned in this article. To learn more about QCDs and whether they are appropriate for the situation it is a good idea to speak with an experienced estate planner.
See Michael J. Jones, IRA Qualified Charitable Contributions Reinstated, Made Permanent, Wealth Management, December 21, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
