What Will Your Children Inherit?

Well, yeah, the QCD touches on what, for most people, is going to be the largest asset they own in their lifetime.

It's going to grow, and that's your individual retirement account.

So a qualified charitable distribution, or QCD, is when part of that IRA goes directly from the IRA account to charity and bypasses you the ira owner doesn't come into your possession doesn't come into your bank account but goes straight from the account directly over to charity so it's a qualified charitable distribution

now one thing that's important here is that right now it can only come out of a traditional ira so because it skips you as the giver, you're not paying tax on it.

So typically you would take that out of your IRA, you pay on it, and then you're able to give and you get that tax deduction for it.

But QCD skips you, goes straight to the charity.

Right, so it wouldn't make sense to give from a Roth IRA.

This is only, so as you think about this, this is only in terms of a traditional IRA.

That's

right.

At this point.

And it's those who are 70 and a half or older are eligible to make this qualified charitable distribution.

And it's particularly helpful for those who are 73 and older because at age 73... is when retirees are forced by Uncle Sam to make distributions to take withdrawals from those IRA accounts.

And those withdrawals are taxable.

It's a smart saving vehicle for retirement because you defer the taxes all along the way.

But then once you make the withdrawals, then those deferred tax payments come due.

But the qualified charitable distribution is a beautiful way to repurpose those forced withdrawals that generous people have.

And so what retirees are finding is that this is a superior, far superior way to handle their giving to church, to charity, to ministry than even what they were doing pre-retirement.

Now, those forced withdrawals, so that's the RMD, right? That's the required minimum distribution that happens at 73.

I've had some people say this sounds too good to be true, and they said, are you sure this is legal? I mean, just a handful of years ago, we had people ask us that.

Are you sure this is legal? Yes, absolutely.

Well, yes.

Yes.

Not only is it legal, but Congress is looking at ways at accelerating it.

It is so popular.