SECURE ACT OF 2019 WRITTEN BY HILLS BANK WEALTH MANAGEMENT GROUP PART 3 OF 3
As a recap on the Secure Act 2019 article series, Part 1 of 3 discussed changes to Required Minimum Distributions (RMDs) and Contributions; and Part 2 of 3 covered IRA distribution deadlines as well as Eligible Designated Beneficiaries.
Part 3 of 3 will cover how Qualified Charitable Distributions (QCDs) are affected with this legislation.
Qualified Charitable Distributions (QCDs) can be done by IRA owners and inherited IRA owners who are age 70½ or older. The SECURE Act raised the age of RMDs to 72, however the Act did not increase the age for QCDs. IRA assets are transferred directly from an IRA to an eligible charity, and the QCD dollar amount is then excluded from the account owner’s annual taxable income, up to a maximum amount of $100,000. This allows the owner to offset some or all of the required minimum distribution for the given year.
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