Contributed by: Jeanette LoPiccolo, CRPC®
With the recent passage of the CARES Act, IRA owners (over the age of 70 ½) are not required to make a minimum distribution in 2020. While some folks may wish to continue their IRA withdrawals for cash flow or tax planning reasons, others may wish to skip IRA withdrawals.
The good news: If you are over age 70 ½ and want to make donations to charity, Qualified Charitable Distributions (QCD) continue to be a great strategy for 2020. Simply contact your Client Service Associate to get the process started.
The QCD, which applies only if you’re at least 70 ½ years old, allows you to directly donate up to $100,000 per year to a charity. Normally, any distribution from an IRA is considered ordinary income from a tax perspective; however, when the dollars go directly to a charity or 501(c)3 organization, the distribution from the IRA is considered not taxable.
If you are not sure how much you can afford to give to charity this year, simply ask your financial planner to review your plan and make a recommendation.
Jeanette LoPiccolo, CFP® is an Associate Financial Planner at Center for Financial Planning, Inc.® She is a 2018 Raymond James Outstanding Branch Professional, one of three recognized nationwide.
