If you’re 70+ or 73 and older and making required minimum distributions (RMDs), consider using a Qualified Charitable Distribution (QCD) to enhance your tax savings. By directing your charitable contributions directly from your RMD, you get a dollar-for-dollar deduction, reducing your taxable income without needing to itemize deductions. This method lets you support causes you care about while maximizing tax benefits. Learn more about QCDs and how to make the most of your retirement income.
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G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
If you are 70 plus or 73 and older and you’re taking required minimum distributions, think about QCD—qualified charitable distributions. It’s a dollar-for-dollar deduction, so if you normally give $500 a month to your church or to some other organization, take that $6,000, have it come out of your RMD, so then you’re going to reduce it 100% because if that same six is all you have, you will have a zero tax deduction if you try to itemize. This is a great way for you to give more money and still save on tax dollars. Go to DrFriday.com.
You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.