Austin Wealth Management

If you're retired and considering charitable or philanthropic donations this year, there are strategic ways to support charitable causes while limiting the tax hit to your IRAs. One of these is a Qualified Charitable Distribution (QCD).

QCDs can help you:

☑ Avoid high tax burdens: Once you hit your 70s, Required Minimum Distributions (RMDs) from pre-tax IRAs become mandatory and are taxed as ordinary income. Amounts given via QCDs are excluded from your taxable income.

☑ Donate up to $105,000 directly from your IRA to a qualified charity -- or multiple charities! Qualified religious organizations, educational and nonprofit groups, and health care and research foundations can all accept QCDs.

☑ Lower your Modified Adjusted Gross Income (MAGI), potentially reducing Medicare premiums and taxes on Social Security benefits. This is beneficial even if you don’t itemize deductions.

Learn more here, and see our case study showing significant tax savings for a couple with $1 million in pre-tax IRAs:

https://austinwealthmgmt.com/qualified-charitable-distribution-philanthropic-impact-meets-tax-savings/

Qualified Charitable Distribution: Philanthropic Impact Meets Tax Savings Good news: Through hard work, savings and diligent investing, you retired with $1 million or more in pre-tax IRA funds! Bad news: The government wants its pi