Frequently Asked Questions
What is a QCD (Qualified Charitable Distribution)?
A qualified charitable distribution (QCD) is a TAX-FREE distribution from your individual retirement account (IRA) to a qualified charity. You must be age 70½ or older to make a qualified charitable distribution. A qualified charitable distribution is not taxed, nor is it included in your taxable income.
For verification that the charity you are contributing to is a “qualified charity,” you can use the Tax Exempt Organization Search on the IRS website to confirm that our charity (Global Primary Care, Inc.) qualifies as a charitable organization for income tax purposes.
For additional information as well on QCD’s, directly from the IRS website, click here.
One common question is, will my (or can my) QCD (qualified charitable distribution) count toward my RMD (required minimum distribution) required annual withdrawal amount?
In short, yes: If certain conditions are met and the QCD was withdrawn properly, QCD’s can also count toward taxpayers annual required minimum distributions (RMDs) each year for their IRA’s (individual retirement accounts) or inherited/beneficial IRA’s.
* Also important: You don’t have to itemize on your tax return to take advantage of a QCD.
There is much (understood) confusion given many of the changes over the past few years within the Secure Act and recent passage of the Secure Act 2.0 regulations. In short, some folks have already reached their attained RMD ages of 70 ½ and RMD ages of 72. And, now starting in 2023, some folks will have their RMD age set at age 73 (while others born after the year 1960 will have the RMD age now of 75). For specific IRS information to help determine your own RMD age, please refer to this page.
Based on all of the confusion now surrounding RMD age attainment (some have RMD ages of 70 ½, some have RMD ages of 72, 73, or 75), does the age to qualify for QCD’s still remain at age 70 ½?
Yes.
What if I’ve inherited an IRA from someone other than my spouse, and have a “inherited-IRA” (alternate terms are: “beneficial-IRA” or “beneficiary-IRA”), can I donate to a qualified charity using a QCD (Qualified Charitable Distribution)?
Yes. (Of course, you’d still have to qualify for the QCD by attaining the age of 70 ½).
Please consult with your tax and/or financial advisor with regards to your own unique situation regarding QCD (qualified charitable distributions) and other potentially tax-free methods of giving (such as grants from Donor Advised Funds or highly appreciated mutual funds or stocks/securities).