Christmas Giving… or Reducing RMDs with QCDs

All of us are being “asked” this time of year for a gift or giving for one purpose or another. Why not consider your community here at St. Frances of Rome?

A qualified charitable distribution (QCD) can be a great way to reduce required minimum distributions (RMDs) and to maximize the tax benefits of giving. Don’t take my word for it (I am only a priest): please consult with financial professional or tax advisor.

QCDs allow individuals age 70 ½ and older to make tax-free donations directly from an IRA to a qualified charity, potentially satisfying all or part of their RMDs. Generally, you can make a QCD from any tax-deferred IRA account, such as a traditional IRA, inherited IRA, SIMPLE IRA, and SEP IRA.

A QCD does not offer a tax deduction but the QCD amount isn’t included in your taxable income either. In some cases, the tax benefits of a QCD could outweigh the charitable deduction you would have received from donating cash or other assets to an eligible charity.

If giving to St. Frances of Rome is already part of your financial plan, a QCD can be a great way to optimize the tax benefits of giving. Aligning retirement goals with changes in tax rules AND your values is winning strategy!

Renovations and repairs, along with continuing operational expenses, are just a fact of life (for parishes and, frankly, everyone). Consider a QCD directed to St. Frances of Rome this season!

Peace,
Father Steven