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QCDs can count toward RMDs once you’re 73 or older. A QCD counts toward your required minimum distribution only if you must take that distribution. RMDs apply to those who are 73 and older.
That distribution counts toward your RMD. There are a few important details to note about qualified charitable distributions, or QCDs. First, they only apply to IRAs.
The best part is that QCDs count toward your required minimum distributions. For 2024, the IRS allows seniors age 70 1/2 or older to make a QCD of up to $105,000 from their IRA. That's up from the ...
That distribution will count toward your RMD, but you don't have to wait until age 73 to take advantage of a QCD. They're available to anyone age 70 1/2 or older.
But because you're donating to a charity, the withdrawal won't count toward your taxable income for the year. In 2023, the maximum QCD was $100,000, but it's $105,000 for 2024.
Knowing these important rules could save you a lot in taxes and fees.
What Is a Required Minimum Distribution (RMD)? An RMD is the minimum amount of money you must withdraw from a tax-deferred retirement plan and pay ordinary income tax rates. The age to begin RMDs ...
Image source: Getty Images. 1. Required minimum distributions no longer apply to Roth 401(k)s. If you decided to save in a Roth 401(k) instead of your employer's tax-deferred 401(k) option, you ...