Are you planning to make a Qualified Charitable Distribution (QCD) in 2024?
Yes? Then read on …
A QCD allows an Individual Retirement Account (IRA) owner to make a distribution directly from their IRA to an eligible charitable organization.
With a higher Standard Deduction amount, a majority of the taxpayers are not itemizing anymore. Under these circumstances, the QCD benefits the charitably inclined taxpayers who are 70 ½ or older and have IRAs. It reduces their tax burden by allowing them to reduce their Required Minimum Distributions (RMDs) on their tax return for the amount of QCDs made in that year, resulting in a lower adjusted gross income (AGI).
Beginning in tax year 2024, the $100,000 cap on the QCD amount is indexed for inflation, under the SECURE Act 2.0. So, for 2024, the annual QCD limit is $105,000, which is $5,000 more than the prior year.
This means that an eligible taxpayer can now transfer up to $105,000 to charity, tax-free, in 2024. For a married couple, if both spouses with IRAs are age 70 ½ or over when the distributions are made, each spouse can make a QCD up to $105,000 for a total of up to $210,000 in 2024.
Pointer: For tax reporting purposes, the donor must obtain a written acknowledgement of their contribution from the charitable organization before filing their return. Such acknowledgement must state the date and amount of the contribution and indicate whether the donor received anything of value in return.
Please contact your HM&M advisor with any questions.
Related Posts
Under the Corporate Transparency Act beginning January 1, 2024, certain entities will be required to file a Beneficial Owner Information Report (BOI). Entities that meet the definition of a “reporting company” and do not qualify ...
Bear with me, please. I am not usually a conspiracy theorist, but I may be on to something. There could be a plot afoot in which President Obama pulls a fast one to undermine Ted ...
The Internal Revenue Service announced yesterday contribution limitations for 2015 – some higher – for retirement plans and other updated information related to retirement planning. Key items include the following: The elective deferral (contribution) limit ...
If you are like me, you know pretty much where your income comes from. Where does it go? That sometimes can be a little less transparent. As I straightened up my office last night at ...
Latest News
On June 9, the IRS released Announcement 2022-13, which modifies Notice 2022-3, by revising the optional standard mileage ...
At the tail end of 2021, the Internal Revenue Service (IRS) released new Schedules K-2 and K-3 effective ...
This information is current as of Sunday, November 21, 2021. On Friday, November 19, 2021, after the Congressional ...
HM&M Updates
DALLAS, Dec. 11, 2024 – Springline Advisory, a trailblazing financial and business advisory firm, is proud to announce its partnership ...
Last month, Senior Manager, Pearl Balsara was invited to speak at the 2023 FPA DFW Annual Conference in ...
We are pleased to announce the winners of the 2022 HM&M Excellence Awards. Ronna Beemer, Keith Phillips, and ...