The recent U.S. budget deal has made the Qualified Charitable Distribution (QCD) permanent. In 2006 Congress made it possible for people to donate to non-profit causes directly from their IRAs, but the provision would expire and need to be renewed every two years leaving uncertainty amongst those engaging in retirement planning. “The provision allows IRA holders aged 70-1/2 and older to make direct donations of up to $100,000 annually without first taking taxable withdrawals from their accounts.” This column explains how people can instruct their IRA custodian to transfer from an IRA directly to a non-profit organization. The new budget deal will give investors and donors certainty now that QCDs have been made permanent. People who are interested in QCDs should speak with a professional estate planner to learn more.
See Mark Miller, Finally, a reliable path for retirees to donate to charity, StreetInsider.com, January 21, 2016.
Special thanks to Jim Hillhouse for bringing this article to my attention.
